ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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. Then follows the marketable securities like gold, properties etc.

Detailed explanation-2: -For example, the money in your checking account, savings account, or money market account is considered liquid because it can be withdrawn easily to settle liabilities.

Detailed explanation-3: -Checking accounts is the most liquid as you can withdraw money whenever an account holder wants. There is no limitation on money taken out of the account. So, it is the most liquid near to cash.

Detailed explanation-4: -A basic checking account is generally the most common option you’ll find. With a basic checking account, you may be able to spend using a debit card, pay bills online or via paper check and transfer funds to or from linked accounts.

Detailed explanation-5: -Examples of liquid assets Can also include foreign currency. Checking accounts: Because checking accounts generally don’t limit the number of withdrawals you can make and allow check writing, online bill pay and debit cards, this is the most liquid of all deposit accounts.