Final answer:
A savings account at a local bank is the most liquid asset among the given options, as it provides the easiest and quickest access to cash. Municipal bonds and stock mutual funds are less liquid, while antique cars are the least liquid.
Step-by-step explanation:
The question concerns the liquidity of different assets, which refers to how easily one can exchange them for cash or other services. Out of the options given: municipal bonds, savings accounts at a local bank, collectible antique cars, and stock mutual funds, the savings account at a local bank is generally considered the most liquid. This is because savings accounts allow for easier and quicker access to cash compared to bonds, antique cars, and even mutual funds, which may require more time or may be subject to market fluctuations and sales processes.
Municipal bonds and stock mutual funds have more liquidity than collectible antique cars but less than savings accounts, as they can be sold in the capital markets. However, they may not be as readily convertible into cash as savings accounts due to potential market conditions and timing of sales. Antique cars, on the other hand, are considered the least liquid, as selling a collectible item can be time-consuming and depends highly on finding the right buyer willing to pay the desired price.