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QuizMultiple Choice

Investing and Financial Markets — Unit test

Question 1 • Personal Finance - EL3403

Which is the most liquid form of money?

Answer
A
cash and currency in circulation
B
investment accounts
C
savings accounts
D
demand accounts

Explanation

Cash and currency in circulation are the most liquid form of money because they can be used immediately to make purchases. Demand accounts, such as checking accounts, are also highly liquid, but accessing their funds generally requires a payment method or withdrawal. Investment and savings accounts may have restrictions or take longer to access.

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