NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investment Landscape
Which asset class is generally considered to have the highest liquidity among the following?
Money market instruments such as treasury bills are generally the most liquid among these choices. They are short-term, have active markets and can be turned into cash quickly with little loss of value, whereas real estate, unlisted equity and collectibles take longer and cost more to sell.
- AMoney market instruments such as treasury bills and liquid investmentsCorrect
- BReal estate
- CUnlisted private equity stakes
- DPhysical art and collectibles
Explanation
Money market instruments are short-term, traded in active markets and can be converted to cash quickly at near-stated value. Real estate, unlisted holdings and collectibles have thin markets, high transaction costs and uncertain exit times.
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