Which class of liquidity constraints is usually NOT considered a factor when formulating an individual IPS ? A. Cash carried on the person B. Negative liquidity events C. Ongoing expense Meanwhile, what is the negative liquidity events ? What is its definition ?
AMC Wrote: ------------------------------------------------------- > Which class of liquidity constraints is usually > NOT considered a factor when formulating an > individual IPS ? > A. Cash carried on the person > B. Negative liquidity events > C. Ongoing expense > Meanwhile, what is the negative liquidity events ? > What is its definition ? A as B & C are definitely cosidered. Negative liquidity events: Construction of house or planned vacation etc ( Known non recurring expenses - different from ongoing expenses)
A
Rakesh, You are right and TKVM for your explanation about “negative liquidity events”.
Funny this question came up. I know someone who ALWAYS carries $10K in cash on him. Kind of stupid…but he feels naked without it.
Ya, this is funny. $100 & $10K can be very different. This question came up in Q-bk.