Which asset would you classify as being most liquid?
A) demand deposits
B) small-time deposits
C) a home
D) gold bullion

Question

Quizplus · Accepted Answer

Demand deposits are the most liquid asset as they can be easily withdrawn or transferred without any delay or penalty. They are available on demand, hence the name. Small-time deposits and gold bullion, on the other hand, are less liquid as they often require time and effort to convert them into cash. A home is the least liquid asset as it can take a considerable amount of time and effort to sell and convert it into cash.

Which Asset Would You Classify as Being Most Liquid