Answer:
The answer is:
1. The $10 bill
2. funds in a savings account
3. Shares in a publicly traded company
4. Car
Explanation:
Liquidity is a function of how fast or how quickly one can turn an instrument or assets into cash.
The most liquid asset is the $10 bill because it is a cash already
The Second-Most Liquid is the funds in a savings account. This can be turn into cash when one walks into the bank for withdrawal
The Third-Most Liquid is the share in a publicly traded company
And the Least Liquid is the car because looking for a buyer to buy car in exchange for cash might take a while
Answer:
Assets in order of liquidity, from most liquid to least liquid are:
1. A $10 bill
2. The funds in a savings account
3. A share in a publicly traded company
4. Your car
Explanation:
The $10 bill is the most liquid, representing cash in hand. It is followed by funds in a savings account, which can be withdrawn at short notice.
The share in a publicly traded company can also easily be turned into cash when the certificate is sold to another investor. It will take less time to do than turning a car into cash.
The car is therefore the least liquid because you will need to find a willing buyer who will likely inspect and test-drive the car. The buyer will also get it assessed by a technician.
Liquidity of an asset is based on the time it will take for an asset to be turned into cash. Surely, the car will take a longer time than any other stated asset above.
