Liquid assets are cash equivalents easily converted to cash

Steps:

• Identify liquid components: cash in wallet ($200), bank balance ($500), and shares ($1100 as marketable securities).
• Sum cash and bank: $200 +$500 = $700.
• Add shares value: $700 +$1100 = $1800.
• Exclude house ($20000) as illiquid.

Why C is correct:

• Liquid assets total $1800 per the definition of readily convertible items like cash, deposits, and stocks.

Why the others are wrong:

• A: Only wallet cash; ignores bank and shares.
• B: Underestimates by excluding shares and possibly undercounting cash/bank.
• D: Includes illiquid house value.

Final answer: C