NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Investment Landscape
Which of the following asset classes is generally regarded as having the highest liquidity for a retail investor?
A savings bank account balance is the most liquid of these assets because it can be withdrawn at face value at any time without delay or loss. Real estate and unlisted shares need time to find buyers, and a fixed deposit usually attracts a penalty on early withdrawal.
- APhysical real estate
- BUnlisted private company shares
- CSavings bank account balanceCorrect
- DFive-year bank fixed deposit with premature-withdrawal penalty
Explanation
A savings bank balance can be withdrawn at face value at any time with no loss of capital. Real estate and unlisted shares take time to sell, and the fixed deposit carries a penalty on early withdrawal.
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