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

Question

Quizplus · Accepted Answer

The U.S. dollar is considered the most liquid because it can be most easily and quickly converted into other forms of value without losing value. Liquidity refers to the ease with which an asset can be converted into cash, and currency like the U.S. dollar is the most liquid asset because it is readily accepted for transactions.

Which of the Following Is the Most Liquid