155k views
5 votes
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
by
8.6k points

1 Answer

0 votes

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
by
8.9k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.