Question
Which investment has the least liquidity?
A: property
B: stocks
C: a savings account
D: a 401k
A: property
B: stocks
C: a savings account
D: a 401k
Answers
GPT-4o mini
A: property
Property typically has the least liquidity compared to the other options listed. Liquidity refers to how quickly an asset can be converted into cash without significantly affecting its value. Stocks can be sold relatively quickly on exchanges, savings accounts allow for easy withdrawals, and 401k accounts, while having penalties for early withdrawal, can still be accessed, albeit less liquid than stocks or cash. Property, on the other hand, often takes time to sell and involves additional costs like closing fees and commissions, making it the least liquid investment.
Property typically has the least liquidity compared to the other options listed. Liquidity refers to how quickly an asset can be converted into cash without significantly affecting its value. Stocks can be sold relatively quickly on exchanges, savings accounts allow for easy withdrawals, and 401k accounts, while having penalties for early withdrawal, can still be accessed, albeit less liquid than stocks or cash. Property, on the other hand, often takes time to sell and involves additional costs like closing fees and commissions, making it the least liquid investment.