Which one of the following investments offers the greatest liquidity?
A) Savings account
B) Common stock
C) Corporate bond
D) Real estate
E) Collectibles

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash without affecting its market value. Savings accounts are highly liquid since you can withdraw your money easily and at any time without risking its value. On the other hand, common stocks, corporate bonds, real estate, and collectibles may take some time to liquidate, and their market value can fluctuate during that time, making them less liquid. Therefore, a savings account is the best choice for high liquidity.

Which One of the Following Investments Offers the Greatest Liquidity