BANKING AFFAIRS

Detailed explanation-1: -Which Type of Account has Low Liquidity? Certificate of deposit is the least liquid type of account (CD). In a certificate of deposit, a bank customer deposits a lump-sum payment in the account, which can then be withdrawn after a set period of time.

Detailed explanation-2: -A time deposit with the bank (e.g. fixed deposit), are the least liquid compared to a savings/demand deposit with banks and currency.

Detailed explanation-3: -Cash is the most liquid asset, while accounts receivable with long payment terms are the least liquid.

Detailed explanation-4: -a-checking account b-savings account c-money market account d-certificate of deposit. The most liquid type of account is a checking account, while the least liquid type of account is a certificate of deposit.

Detailed explanation-5: -Liquidity in finance by the book is how quickly any asset can be changed in to hard cash. Therefore, any account having only cash can be said as the most liquid. For instance, a checking or a saving account could be considered the most liquid accounts.