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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Evaluating the Financial Position of Clients

In personal financial planning, which of the following is classified as a 'liquid asset' on a client's personal balance sheet?

A savings bank account balance is a liquid asset because it can be accessed immediately at full value. A self-occupied flat, an EPF corpus with withdrawal restrictions, and jewellery for family use cannot be converted to cash quickly without delay or loss.

  1. ABalance in a savings bank accountCorrect
  2. BSelf-occupied residential flat
  3. CEmployees' Provident Fund corpus
  4. DGold jewellery kept for family use

Explanation

Liquid assets are cash or items that can be converted to cash immediately with negligible loss of value. A savings bank balance fits this. A house, EPF corpus and personal-use jewellery are not readily convertible without delay, restrictions or loss of use.

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