Arrange the Following Assets in Decreasing Order of Liquidity, I

question 48

Multiple Choice

Arrange the following assets in decreasing order of liquidity, i.e., the most liquid should be listed first.
I.equipment and machinery;
II.inventories;
III.accounts receivable;
IV.marketable securities

• A)I, II, III, and IV
• B)II, III, IV, and I
• C)III, IV, II, and I
• D)IV, III, II, and I

---

Definitions:

Society

A community of individuals living together in a more or less ordered community, sharing customs, laws, and organizations.

Money Demand

The desired holding of financial assets in the form of money; it is often associated with the level of liquidity preference.

Real Interest Rate

The interest rate adjusted for inflation, representing the true cost of borrowing or real yield on investment.

Value of Money

The purchasing power of currency, indicating the amount of goods or services that one unit of money can buy, which fluctuates over time due to inflation or deflation.