Answer:
1) ease of converting an asset into cash
2) checking account
Step-by-step explanation:
Liquidity describes how easily an asset can be converted into cash. Money is purely liquid because it is already in cash form. Liquidity is defined as the ease with which we are able to convert an asset or securiy to cash without affecting its market price.
Direct exchange of goods and services for other goods and services is barter system. Money with no intrinsic value is fiat money. Anything that is accepted in exchange for goods or for the payment of debt is money.
Any account which is having only cash can be said to be liquid. Therefore accounts like checking account or a savings account can be said to be most liquid. The other three options are not much liquid when compared with checking account.
Of the options listed, the checking account would be the most liquid because cash can be withdrawn immediately and there are no penalties. Less liquid assets would include certificate of deposits, stock certificates, and real estate. Turning an asset such as a home into cash takes considerable time and also involves transaction fees in the process.