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

Question

Quizplus · Accepted Answer

A checking account is the most liquid because you can easily withdraw funds, followed by a certificate of deposit that can be liquidated with a penalty fee. Shares of stock can be sold quickly, but may not be as liquid as the first two. A new vehicle is the least liquid because it can take time to sell and convert into cash. Option C lists the items in order from most liquid to least liquid.

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