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Ranking assets from most liquid to least liquid, the correct order is

A) savings bonds; house; currency.
B) currency; savings bonds; house.
C) currency; house; savings bonds.
D) house; savings bonds; currency.

1 Answer

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Final answer:

The correct order of assets from most liquid to least liquid is currency; savings bonds; house. Currency is readily available cash, savings bonds need to be sold or held to maturity, and a house is the least liquid asset requiring time to sell.

Step-by-step explanation:

The correct ranking of assets from most liquid to least liquid is currency; savings bonds; house. This order reflects liquidity, which is the ease with which an asset can be converted into cash without affecting its market price.

Currency is the most liquid asset, as it is already in cash form and can be used immediately to purchase goods or services. Savings bonds are less liquid because they may need to be held until maturity or sold in a market, which can take some time, but they are still more liquid than real estate. A house is the least liquid of the three, as it often requires a significant amount of time and effort to sell and convert into cash.

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