Multiple choice

Which of the following is the most liquid?

  1. money

  2. Share

  3. Gold

  4. Debenture
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Money is the most liquid asset because it can be immediately used for transactions and is universally accepted as a medium of exchange. Shares (B) need to be sold, Gold (C) needs to be converted, and Debentures (D) are debt instruments that take time to liquidate. Liquidity refers to how quickly an asset can be converted to cash without loss of value.

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