Final answer:
The asset with the highest liquidity among the options provided is deposits in a savings account, as it can easily and quickly be converted into cash without significant loss of value.
Step-by-step explanation:
When considering the liquidity of an asset, it's crucial to understand how quickly and easily the asset can be converted into cash without significant loss of value. Of the options presented - 500 shares of Apple stock, deposits in a savings account, a Rembrandt painting, and a vacation home - the asset with the highest liquidity is the deposits in a savings account. Savings accounts can quickly be accessed, and funds can be withdrawn without substantial costs or price discounts. In contrast, stocks, like Apple shares, also have high liquidity but may involve transaction costs and can fluctuate in price based on market conditions. While both physical items and investment choices like a Rembrandt painting or a vacation home may have the potential for value appreciation, their liquidity is typically low because selling such items can be time-consuming and may require significant price reductions to attract buyers.