In terms of liquidity, the correct ranking from least liquid to most liquid is essential for understanding how quickly and easily an asset can be converted into cash without significantly affecting its value.
Property is the least liquid asset among the choices provided because it typically requires significant time and effort to sell. The selling process often involves additional costs such as closing fees, real estate commissions, and a lengthy marketing period, making it hard to convert into cash quickly.
Equities, or stocks, are more liquid than property since they can usually be sold relatively quickly on the stock market. However, they are still not as liquid as cash or short-term securities because their market value can fluctuate and selling might take time depending on market conditions and trading volume.
Short-term securities, such as Treasury bills or other financial instruments with maturities of one year or less, are even more liquid than equities. These instruments are designed to be easily accessible and often have a secondary market where they can be quickly sold, allowing for a fast conversion to cash.
Cash is the most liquid asset since it is already in the form needed for transactions and does not require any conversion. It can be used immediately for purchases or investments without delay.
Thus, the correct order is: Property (least liquid), followed