Planning for the possibility that the plumbing in your house needs repair is part of a plan for a. financing b. managing income c. managing liquidity d. cash inflow

Planning for the possibility that the plumbing in your house needs repair is part of a plan for Managing liquidity.

Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. In simpler terms, liquidity is to get your money whenever you need it.

c. managing liquidity

Step-by-step explanation:

Liquidity management

Assessing liquidity risk is an obligation of solidarity organizations and they must adopt policies and design strategies for liquidity management, measure and monitor liquidity risk, quantify the potential loss arising from the anticipated or forced sale of assets to unusual discounts to deal in a timely manner with the obligations incurred and have contingency plans for handling liquidity requirements.

As an investor, it is essential that you have a guarantee of recovering your investment given the terms and commitments set forth in the fund in which you invest, regardless of the different market conditions and / or fluctuations in the different economic variables. Therefore, it is important that the funds maintain good liquidity management, so that they can respond to the needs and requests of the participating agents and thus reduce the level of risk incurred at the time of investing. Now, what does appropriate liquidity management imply?

When you invest with your own capital, you get in touch with an intermediary that helps you manage your investment portfolio. These intermediaries usually go through liquidity assessment processes: the ability to respond to your monetary obligations without incurring major losses. In other words, they are evaluated for their ability to respond to you, as an investor, when it comes to repaying your money and giving you their returns. Therefore, they must act to ensure that the risk of not being able to answer you is as small as possible. So, if they manage to maintain a good response capacity, they are applying appropriate liquidity management. To achieve good liquidity management, intermediaries turn to tools based on accounting, finance and economics.

A strategy used by intermediaries to reduce the risk of illiquidity is to leave as little of an investment portfolio as possible in markets with illiquid or low liquid assets.

These assets are referred to as such because the process of converting them into “liquids,” or transforming them into money can take much longer. A real estate asset is the best example of an asset of this type, since its sale process can take an indeterminate amount of time, depending on the market. Therefore, getting your monetary value is delayed.

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step-by-step explanation: