Consider the relative liquidity of the following assets: Assets 1. A share in a publicly traded company 2. A $10 bill| 3. The funds in a savings account 4. Your car Select the assets in order of their liquidity, from most liquid to least liquid. Asset Most Liquid Second-Most Liquid Third-Most Liquid Least Liquid

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Answer:

A $10 bill|

The funds in a savings account

A share in a publicly traded company

Your car

Explanation:

Liquidity measures how fast an asset can be converted to cash.

A $10 bill is already cash so it is the most liquid.  

The funds in a savings account can be easily withdrawn from the account when needed. it is the second most liquid

The process of converting a share to cash is a little longer.

To sell a car, one has to find a ready buyer and negotiate the price. It is the least liquid

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