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6 February, 19:27

This problem has been solved! See the answerConsider the relative liquidity of the following assets:Assets1. A $5 bill2. The funds in a savings account3. A boat you own4. A bond issued by a publicly traded companySelect the assets in order of their liquidity, from most liquid to least liquid. AssetMost Liquid Boat$5.00 billFunds in a savings accountBondSecond-Most Liquid Funds in a savings accountBoat$5.00 billBondThird-Most Liquid BondBoat$5.00 billFunds in a savings accountLeast Liquid Funds in a savings account$5.00 billBondBoat

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  1. 6 February, 19:37
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    Asset Most Liquid : The funds in a savings account

    Second-Most Liquid: A bond issued by a publicly traded company

    Third-Most Liquid: A $5 bill

    Least Liquid: A boat you own

    Explanation:

    Liquidity it's define as the speed of an assets to be converted to cash,

    the assets that take less days to buy or to sold are more liquid than others. Cash it's the assets most liquid then are different types of assets that take more or less time to convert in cash.

    The funds in a savings account, it's almost cash because the availability of the money is instantaneous.

    A bond issued by a publicly traded company, the second most liquid asset is not instant cash, but it's possible to obtain money in a short period of time.

    A $5 bill, to obtain this money it's necessary to wait until the invoice expires to collect the money, sometimes it's possible to get the money but carries some cost.

    A boat you own, It is the least liquid asset because it is necessary to find a boat buyer and then start the paperwork to sell it.
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