Which One of the Following Short-Term Assets Is Most Liquid

question 4

Multiple Choice

Which one of the following short-term assets is most liquid?

• A) Cash
• B) Marketable securities
• C) Accounts receivable
• D) Inventory

---

Definitions:

Price Level

A measure that reflects the average prices of goods and services in an economy at a given time.

Nominal GDP

The market value of all final goods and services produced in a country in a given period, measured in current prices.

GDP Deflator

An index measuring the change in prices of all new, domestically produced goods and services in an economy.

Real Output

The total value of all goods and services produced in an economy, adjusted for inflation, reflecting the actual productivity rather than nominal figures.