Which of the following assets is most liquid?
A)funds in a checking account
B)a car
C)a home
D)a municipal bond

Question

Quizplus · Accepted Answer

Funds in a checking account are the most liquid asset as they can be easily accessed and used for transactions. A car and a home are illiquid assets as they cannot be easily converted into cash without selling them. A municipal bond is also an illiquid asset as it can only be sold in the bond market.

Which of the Following Assets Is Most Liquid