Which of the following assets is most liquid?
A)A checking account
B)A savings account
C)A certificate of deposit (CD)
D)The above three are equally liquid.

Question

Quizplus · Accepted Answer

A checking account is the most liquid asset as funds can be easily accessed through ATM withdrawals, debit card purchases, and electronic transfers. Savings accounts may have withdrawal limits and penalties for excess withdrawals. CDs have fixed terms and penalties for early withdrawals.

Which of the Following Assets Is Most Liquid