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9 June, 12:35

2. Liquidity Consider the relative liquidity of the following assets: Assets 1. The funds in a savings account 2. A bond issued by a publicly traded company 3. A $5 bill 4. Your house 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

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  1. 9 June, 13:15
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    The answer is,

    Asset

    Most Liquid : $5 bill

    Second-Most Liquid : The funds in a savings account

    Third-Most Liquid : A bond issued by a publicly traded company

    Least Liquid : Your house

    The liquidity simply measures the ability to turn in to cash in a relatively short period of time. Cash at hand is the most liquid while property and other movable and immovable assets tends to be a bit difficult to be turned into cash quickly.
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