Which of the Following Assets Is the MOST Liquid

question 388

Multiple Choice

Which of the following assets is the MOST liquid?

• A)currency
• B)checking account balance
• C)stock in a publicly traded company
• D)a townhouse

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Definitions:

AC

Average Cost, also referred to as the cost per unit of output, often used interchangeably with Average Total Cost.

Deadweight Loss

The reduction in economic performance that is seen when a good or service fails to achieve the equilibrium in a free market.

Perfectly Competitive Industry

An industry structure characterized by many small firms, homogeneous products, and free entry and exit, leading to price-taking behavior.

AC

Short for Alternating Current, a type of electrical current in which the flow of electric charge periodically reverses direction.