ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Real estate is the ____ liquid consumer investment.
A
Least
B
Most
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -Land and real estate investments are considered non-liquid assets because it can take months for a person or company to receive cash from the sale.

Detailed explanation-2: -The most common examples of non-liquid assets are equipment, real estate, vehicles, art, and collectibles. Ownership in non-publicly traded businesses could also be considered non-liquid. With these kinds of assets, the time to cash conversion is difficult to predict.

Detailed explanation-3: -Real estate is the least liquid consumer investment. It takes time and consideration of the current market to sell real estate, thereby making it difficult to access your investment dollars.

Detailed explanation-4: -Cash is considered to be the most liquid asset of all, while real assets (for example property) and private companies are typically the least liquid.

There is 1 question to complete.