QuestionAugust 10, 2025

Which of the following assets is the most liquid? Property Cash Stocks Precious Metals

Which of the following assets is the most liquid? Property Cash Stocks Precious Metals
Which of the following assets
is the most liquid?
Property
Cash
Stocks
Precious Metals

Solution
4.2(254 votes)

Answer

Cash Explanation 1. Define Liquidity Liquidity refers to how quickly and easily an asset can be converted into cash without affecting its market price. 2. Evaluate Each Asset Cash is already in liquid form, requiring no conversion. Stocks can be sold relatively quickly but may involve transaction time and fees. Precious metals require finding a buyer and may fluctuate in value. Property is the least liquid due to the lengthy selling process.

Explanation

1. Define Liquidity<br /> Liquidity refers to how quickly and easily an asset can be converted into cash without affecting its market price.<br /><br />2. Evaluate Each Asset<br /> Cash is already in liquid form, requiring no conversion. Stocks can be sold relatively quickly but may involve transaction time and fees. Precious metals require finding a buyer and may fluctuate in value. Property is the least liquid due to the lengthy selling process.
Click to rate:

Similar Questions