ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A checking account is the most liquid of all the savings tools because the money is considered cash. The funds are easily accessed through a check, an automated teller machine (ATM), a debit card, the telephone, or Internet. Checking accounts are available at depository institutions.

Detailed explanation-2: -Yes, although a savings account is considered less liquid than a checking account because banks limit the number of withdrawals you can make from your savings account each month, and they typically do not come with check-writing privileges or debit/ATM cards.

Detailed explanation-3: -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-4: -• Savings tools are liquid – Liquidity is defined as how quickly and easily an asset can be converted into cash. The. degree of liquidity varies for each savings tool, but in general, it is quick and easy to withdraw money. Each savings tool has different features including interest rates and liquidity.