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Which of the following is most liquid?

A) a government bond
B) a dollar bill
C) a mutual fund share
D) a corporate bond

User Alix Axel
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1 Answer

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Final answer:

The most liquid option among the given choices is a dollar bill, as it can be easily exchanged for goods or services.

Step-by-step explanation:

Liquidity refers to how easily one can exchange money or financial assets for a good or service. Among the options given, the most liquid is a dollar bill. Dollar bills are widely accepted as a medium of exchange and can be easily used for transactions. On the other hand, government bonds, corporate bonds, and mutual fund shares require a more complex process to convert them into cash.

User ML Xu
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