What Type of Account Would Be Considered the Most Liquid

question 24

Multiple Choice

What type of account would be considered the most liquid?

• A) Certificate of deposit
• B) Checking account
• C) Money market account
• D) Brokerage account
• E) Share of stock

---

Definitions:

Put Option

A financial contract granting the holder the right to sell a specified amount of an underlying asset at a set price within a specified timeframe.

Strike Price

The fixed price at which the owner of an option can purchase (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

American Warrant

An instrument that grants the holder the right to buy shares of a company at a specific price before the warrant expires.

Convertible Bond

A type of bond that can be converted into a predetermined number of the issuer's equity shares at certain times during its life, according to the terms of the bond.