Question

Which list ranks assets from most to least liquid?

Group of answer choices

bonds, cars, money, houses

money, bonds, cars, houses

money, cars, houses, bonds

bonds, money, cars, houses

Answer 1

Ans: The most liquid assets are those which can easily be converted into cash in a short period of time. The correct answer is (b) because money is most liquid; then comes the bonds which can easily be sold on the exchange and can be converted into cash and then cars because it takes time to sell cars and find a buyer for the cars and then comes the houses which can be sold after a long period of time to find a suitable buyer for the house. Bonds can esaily be sold on the stock market exchange and most of the bonds can be sold before maturity so these are liquid assets.

Thus correct order is money, bonds, cars and houses.