Question 10 (1 point) Maintaining liquid assets that you can easily access when you need funds allows you to avoid using credit and paying finance charges. OTrue False

## Step 1<br />The problem statement is a statement about financial management. It suggests that maintaining liquid assets allows you to avoid using credit and paying finance charges.<br /><br />## Step 2<br />To understand this statement, we need to understand what liquid assets are. Liquid assets are assets that can be easily converted into cash without affecting their market price. Examples of liquid assets include cash, checking accounts, savings accounts, and money market funds.<br /><br />## Step 3<br />The statement implies that by having liquid assets, you can avoid using credit and paying finance charges. This is because liquid assets can be easily accessed when needed, which means you don't need to borrow money or use credit.<br /><br />## Step 4<br />However, this statement is not entirely accurate. While having liquid assets can help you avoid using credit, it doesn't necessarily mean you won't need to use credit. There may be situations where you need to use credit, such as when you need to make a large purchase or when you need to pay for an emergency.<br /><br />## Step 5<br />Moreover, having liquid assets doesn't mean you won't need to pay finance charges. If you use credit, you will need to pay finance charges.