question 10 of 10 which asset is the most liquid? a. a certificate of deposit b. residential real estate c…

question 10 of 10 which asset is the most liquid? a. a certificate of deposit b. residential real estate c. commercial real estate d. an individual retirement account

question 10 of 10 which asset is the most liquid? a. a certificate of deposit b. residential real estate c. commercial real estate d. an individual retirement account

Answer

Brief Explanations:

Liquidity refers to how quickly an asset can be converted to cash without significant loss in value. Certificates of deposit can often be cashed in (with some penalties in some cases) more quickly compared to real - estate assets which require time to sell, and individual retirement accounts may have restrictions on withdrawals. Real - estate (both residential and commercial) is generally illiquid due to the time - consuming sales process.

Answer:

A. A certificate of deposit