Question

money that an individual spends is referred to as _______.

○ liquidity

○ cash outflow

○ investment

○ cash inflow

Explanation:

To solve this, we analyze each option:

• "liquidity" refers to how quickly an asset can be converted to cash, not spending.
• "cash outflow" is defined as money moving out (spent) by an individual or entity.
• "investment" is money put into assets for growth, not just spending.
• "cash inflow" is money coming in, opposite of spending.

So the correct term for money spent is cash outflow.

Answer:

B. cash outflow