Which among the following assets is the most liquid?
A) corporate bonds
B) fine art
C) deposits that can be withdrawn using ATMs
D) shares of stock

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash without impacting its market value. Among the options given, deposits that can be withdrawn using ATMs are the most liquid asset as they can be accessed immediately and converted into cash without any difficulty or additional costs. Corporate bonds and fine art can be difficult to sell quickly without impacting their market value, and selling shares of stock can involve brokerage fees and a waiting period for settlement.

Which Among the Following Assets Is the Most Liquid