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Which one of the following is least liquid?

A. Foreign currency

B. U.S. Treasury bonds

C. Real estate

D. Bank deposit

User Avba
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1 Answer

2 votes

Answer: Real estate

Explanation: Liquidity refers to the ability of a security to be converted into cash without having a major change in its price. In other words, liquidity is the relationship between the speed of sale of a security and its change in price.

Real estate refers to the land or other housing facilities etc. These assets require huge amount for purchase. It takes to find a buyer willing to make such a big investment, thus, they are not liquid.

Hence from the above we can conclude that the right option is C.

User Quaisha
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