Question

rate the following bank accounts from most to least liquid: cd, savings account, checking account, money market account.
a. cd, savings account, checking account, money market account
b. savings account, checking account, cd, money market account
c. cd, money market account, savings account, checking account
d. checking account, savings account, money market account, cd
please select the best answer from the choices provided
a
b
c
d

Explanation:

To determine the liquidity order, we analyze each account:

• Checking account: Most liquid (used for daily transactions, easy access).
• Savings account: Less liquid than checking (some withdrawal limits, but still accessible).
• Money market account: Less liquid than savings (may have higher minimums or restrictions).
• CD (Certificate of Deposit): Least liquid (locked for a term, early withdrawal penalties).

So the order from most to least liquid is: Checking account, Savings account, Money market account, CD. This matches option d.

Answer:

D. Checking account, savings account, money market account, CD