Rank the following items in terms of most liquid to least liquid.
A) checkable deposits, cash, an office building your father owns
B) cash, credit card, money market mutual funds, checkable deposits,
C) cash, checkable deposits, savings deposits, an office building your father owns
D) cash, Microsoft stock certificates you own, checkable deposits

Question

Quizplus · Accepted Answer

The most liquid assets are cash and checkable deposits, followed by savings deposits. An office building and Microsoft stock certificates are much less liquid. Option C lists these items in order of decreasing liquidity. The other options either contain assets that are not liquid at all (such as an office building) or do not accurately order the assets from most liquid to least liquid.

Rank the Following Items in Terms of Most Liquid to Least