Question

Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset.

A) money
B) stock
C) artwork
D) gold

Answer 1

Money (Option A) is the most liquid asset, as it does not need to be converted to make purchases.

Step-by-step explanation:

The most liquid asset is money (Option A). Money is considered highly liquid because it can be easily used to make purchases without the need for conversion. Cash, such as bills and coins, is the most liquid form of money, as it can be immediately spent to buy goods or services. Other forms of money, such as checks or credit cards, may also be used for purchases, but they require additional steps or processes to convert them into cash.