Which of the following lists ranks assets from most to least liquid?
A)currency, fine art, stocks
B)currency, stocks, fine art
C)fine art, currency, stocks
D)fine art, stocks, currency

Question

Quizplus · Accepted Answer

The most liquid asset is currency as it can easily be exchanged for goods or other assets. Stocks are relatively liquid as they can be sold on a stock exchange, but the process may take a few days to complete. Fine art is the least liquid as it may take time to find a buyer and negotiate a sale. Therefore, the ranking of assets from most to least liquid is currency, stocks, and fine art. Choice B is the only option that correctly ranks the assets in this order.

Which of the Following Lists Ranks Assets from Most to Least