Which of the following is the most liquid category of assets?

Question

Quizplus · Accepted Answer

Demand deposits (also known as checking accounts) are the most liquid category of assets because they can be easily and quickly converted into cash. Money market mutual fund balances and saving-type accounts also have high liquidity, but they may have restrictions or penalties for early withdrawal. Large and small time deposits typically have longer maturity periods, making them less liquid.

Which of the Following Is the Most Liquid Category of Assets