Consider the relative liquidity of the following assets: Assets

1. A $5 bill

2. The funds in a money market account

3. Your house

4. A share in a publicly traded company

Select the assets in order of their liquidity, from most liquid to least liquid. Asset Most Liquid Second-Most Liquid Third-Most Liquid Least Liquid

Consider the relative liquidity of the following assets: Assets

1. A $5 bill

2. The funds in a money market account

3. Your house

4. A share in a publicly traded company

Share of stock House Funds in a money market account ast liquid Select the assets in order o $5.00 bill Most Liquid Second-Most Liquid Third-Most Liquid Least Liquid

Answer “Consider the relative liquidity of the following assets”.

Liquidity

Liquid Asset is defined as the cash or other asset that can easily be converted into cash. Cash is a most liquid asset and after that bank cheque, DD, a money order can easily be converted in cash that is why they are considered as near to most liquid asset. Assets that are difficult to sell can be considered least liquid assets. If you can’t sell your home and turn it into cash, then your home is considered the least liquid asset.

So, here a $5 bill is the most liquid asset listed here.

The Second most liquid asset is the funds in a money market account

The third most liquid asset is Share of stock

The least liquid asset is  your house