Question

John wants to invest his saving in highly liquid investments. Which of the following financial assets serve this financial goal? a. bonds b, money market funds c. stocks d. 3-year cds

Answer 1

I'd go with B ,money markets can generally be cashed out at the end of any business day with no penalties or transaction fees. 3 year CDs usually have a prepayment penalty, and stocks and bonds have to be traded on an exchange which involves transaction fees and the risk the prices may have fallen. I would choose B.