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3 years ago

3. Rank the following assets from most liquid to least liquid:

Business

1 answer:

andrey2020 [161]3 years ago

5 0

Answer:

.Currency

Checking account deposits

Savings deposits

Common Stock

Automobiles

Houses

Explanation:

Liquidity measures how fast an asset can be used as a medium of exchange.

Currency is the most liquid because it can be readily used as a medium of exchange.

Checking account deposit can easily be withdrawn and the cash can be used as a medium of exchange.

Savings deposits takes one or two days before cash is available.

Common stock is converted to cash in a longer period.

It is easier to sell an automobile than a house. Therefore, a car is more liquid than a house

I hope my answer helps you

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