Question 39
Money and InflationWhich is the most liquid of the following financial assets held by an individual?
- A.Outstanding balance on the current account of a commercial bank
- B.A credit balance on a savings account
- C.A crossed postal order
- D.An insurance policy
- E.All of the above.
Show the answer and explanation
Answer: A (Outstanding balance on the current account of a commercial bank)
Explanation
A current account balance can be spent at once by cheque, so it is the closest to cash.