3
lesson pretestMultiple Choice

Pretest

Question 3 • Economics

Which investment has the least liquidity?

Answer
A
checking account
B
small business
C
house
D
mutual fund

Explanation

Liquidity is how easily an investment can be converted to cash. A checking account is immediately accessible, and mutual fund shares can generally be sold readily. A house may take time to sell, but selling a small business is usually even more difficult because finding a buyer and transferring its operations can be complicated. Therefore, the small business has the least liquidity.

AI-written and checked against the verified answer.

Previous
Next