7
QuizMultiple Choice

Other Bank Accounts

Question 7 • Financial Math - MA2007

Rate the following bank accounts from most to least liquid: CD, savings account, checking account, money market account.

Answer
A
CD, savings account, checking account, money market account
B
Savings account, checking account, CD, money market account
C
CD, money market account, savings account, checking account
D
Checking account, savings account, money market account, CD

Explanation

Liquidity means how quickly and easily you can access money without penalty or loss. A checking account is usually easiest to use for payments, followed by a savings account and then a money market account, which may have limits or requirements for withdrawals. A certificate of deposit (CD) is least liquid because funds are generally locked in for a set term, and early withdrawal may incur a penalty. Therefore, the order is checking account, savings account, money market account, CD.

AI-written and checked against the verified answer.

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