Question

If an investor needs emergency cash, which asset is typically more liquid, or easier to sell?

(1 point)

Stocks, because they can be sold quickly on a stock exchange.

Neither is liquid enough for a true financial emergency.

Both are equally liquid since they are sold by a broker.

Bonds, because their interest payments are fixed and guaranteed.

Answer 1

Stocks, because they can be sold quickly on a stock exchange. Stocks are generally more liquid than most bonds.