Single choice4)An example of a highly liquid assets is a:Treasury bill (T-bill)High yield bondCommercial real estate property
Question
An example of a highly liquid assets is a:
- Treasury bill (T-bill)
- High yield bond
- Commercial real estate property
Solution
The correct answer is Treasury bill (T-bill).
Here's why:
-
Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. The most liquid assets are cash and securities that can be sold immediately at a stable price.
-
A Treasury bill (T-bill) is a short-term debt obligation backed by the U.S. government with a maturity of less than one year, making it highly liquid.
-
High yield bonds, also known as junk bonds, are more risky investments and may not be as easy to sell quickly.
-
Commercial real estate properties are not considered liquid assets because they can take a significant amount of time to sell, and the sale price may be much lower than the market value.
Similar Questions
Which asset would you classify as being most liquid?ademand depositsbsmall-time depositsca homedgold bullion
Which of the following has highest level of liquidity?a. Mutual Fundsb. Fixed depositc. Real estated. Gold
Multiple Choice QuestionWhich of the following are not liquid assets?Multiple choice question.checking accountcashsavings accountreal estate investment
Which of the following bank assets is the most liquid?A) consumer loansB) reservesC) state and local government securitiesD) U.S. government securities
Rank the following bank assets from most to least liquid: a. Commercial loans b. Securities c. Reserves d. Physical capital
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.