Which One of the Following Items Would Be the Most

question 50

Multiple Choice

Which one of the following items would be the most liquid?

• A) Pizza.
• B) Ticket to next week's basketball game.
• C) Stereo.
• D) Dollar bill.
• E) U.S. savings bond.

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Definitions:

Bonds' Market Value

The market value of bonds is the current market price at which these debt securities can be bought or sold, influenced by interest rates, credit ratings, and other factors.

Term Bond

A bond that has a fixed maturity date on which the principal is due to be paid back in full.

Face Value

The nominal value stated on a financial instrument, such as a bond or stock certificate.

Bond Price

The market price at which a bond is traded, reflecting its current value as determined by interest rates, the bond's credit quality, and other factors.