Which of the following statements regarding liquidity is incorrect?

1. Liquidity is necessary because there will be periods when your income is not adequate to cover your expenses.

2. Alternative sources of liquidity include access to a credit card, a line of credit, or an emergency fund.

3. Maintaining adequate liquidity is important for situations where your income exceeds your expenses.

4. A useful rule of thumb is that you should have between three and six months’ worth of expenses in an emergency fund.

Answer rating: 100% (QA)

Statement A is incorrect regarding liquidity which is Liquidity is necessary because there wi... View the full answer