NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investment Landscape
Which of the following asset classes is generally considered to offer the highest liquidity to an investor?
A bank savings account balance is the most liquid option because it can be withdrawn immediately at full value. Real estate and unlisted shares need time to find buyers, and a tax-saving fixed deposit is locked in for five years.
- APhysical real estate
- BBank savings account balanceCorrect
- CUnlisted private company shares
- DA 5-year tax-saving bank fixed deposit
Explanation
A savings balance can be withdrawn at face value almost instantly. Real estate and unlisted shares take time to sell, and a tax-saving deposit has a lock-in of 5 years with no premature withdrawal.
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