caitlyn would like to buy their first car (a beautiful blue honda civic). the car is priced at $20,000 and…

caitlyn would like to buy their first car (a beautiful blue honda civic). the car is priced at $20,000 and they need to come up with a down payment of $3,000. caitlyn starts by looking at their most liquid assets to come up with the necessary down payment. which of the following are the most \liquid\ of caitlyns options: $300 in their checking account. $2,000 in their savings account. $1,000 in a money market mutual fund. $1,500 in their certificate of deposit.

caitlyn would like to buy their first car (a beautiful blue honda civic). the car is priced at $20,000 and they need to come up with a down payment of $3,000. caitlyn starts by looking at their most liquid assets to come up with the necessary down payment. which of the following are the most \liquid\ of caitlyns options: $300 in their checking account. $2,000 in their savings account. $1,000 in a money market mutual fund. $1,500 in their certificate of deposit.

Answer

Brief Explanations:

Liquidity refers to how quickly an asset can be converted to cash without significant loss in value. Checking accounts offer the highest liquidity as funds can be accessed immediately through methods like debit - card transactions or writing checks. Savings accounts also have high liquidity but may have some transaction limitations. Money market mutual funds are relatively liquid but may take a day or two to convert to cash. Certificates of deposit have penalties for early withdrawal, making them the least liquid among these options.

Answer:

$300 in their checking account.