Which list ranks assets from most to least liquid?
A)money,bonds,cars,houses
B)money,cars,houses,bonds
C)bonds,money,cars,houses
D)bonds,cars,money,houses

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash. Money is the most liquid asset as it can easily be used to purchase goods and services or can be deposited into a bank account. Bonds are also relatively liquid, but they may take some time to sell and realize cash. Cars and houses are less liquid as they may take longer to sell and may not sell for the desired price. Therefore, the correct order from most to least liquid is money, bonds, cars, houses, making option A the best choice.

Which List Ranks Assets from Most to Least Liquid