Consider The Relative Liquidity Of The Following Assets:

(Correct Answer Below)

Consider The Relative Liquidity Of The Following Assets:

ing assets: Assets 1. A bond issued by a publicly traded company 2. A $50 bill 3. The funds in a savings account 4. A boat you own
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2, 3,1, 4 Liquidity refers to how quickly an asset can be converted into a medium of exchange. Cash or currency can be used immediately as a medium of exchange, so a $50.00 bill is the most liquid asset listed here. The funds in a savings account must be withdrawn before they can be used to purchase goods and services, but this transaction usually can be done within a day or two, assuming the account is with a local bank. A broker can sell a bond issued by a publicly traded company within a short period of time, and then it may take a few days for the accounts to settle and for you to receive your cash. A boat you own is the least liquid of the assets because it may take weeks or even months to find a buyer and get your cash.
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