Of the items in the following lists, which go from most liquid to least liquid?
A)a checking account, a house, a six-month certificate of deposit, shares of stock
B)a six-month certificate of deposit, shares of stock, a house, a checking account
C)a checking account, a certificate of deposit, shares of stock, a house
D) a house, a six-month certificate of deposit, shares of stock, a checking account

Question

Quizplus · Accepted Answer

The items in order from most liquid to least liquid are: a checking account (can be easily accessed and withdrawn from), a certificate of deposit (requires a penalty to withdraw early), shares of stock (can be sold quickly but may fluctuate in price), and a house (takes longer to sell and convert to cash). Therefore, option C has the correct order.

Of the Items in the Following Lists, Which Go from Most