Which of the following is the most liquid?
A) gold.
B) the U.S. dollars that your professor used this morning to buy breakfast.
C) the pencil or pen in your hand right now.
D) your credit card.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash without affecting its market price. U.S. dollars are the most liquid because they are widely accepted as a medium of exchange and can be easily converted into goods, services, or other currencies. Gold and pencils/pens are less liquid because they are not as widely accepted in exchange and may need to be sold to a specific market or buyer. Credit cards represent access to credit, not an actual asset, so they are not considered as a liquid asset.

Which of the Following Is the Most Liquid