Which of the Following Assets Is More Liquid

question 19

Multiple Choice

Which of the following assets is more liquid?

• A)Your car.
• B)Your money in the savings account.
• C)Your money in the chequing account.
• D)Your stock of a company.

---

Definitions:

Feasible Allocation

is a concept in economics that refers to the division of resources or goods among various uses or people in a way that is possible given the resources available.

Utility Function

A mathematical representation in economics that captures the level of satisfaction or utility that consumers derive from consuming goods and services.

Desert Island

A secluded and uninhabited island, often used in scenarios and thought experiments in economics and ethics to explore human behavior in isolation.

Competitive Equilibrium

A market situation where supply equates demand, leaving no incentive for price changes, assuming all agents are price-takers.