Which of the following statements is true when considering liquidity?

Which of the following statements is true when considering liquidity? O A. Physical assets are the most liquid type of assets. OB. Stocks have no transaction fees. O C. Bonds have a guaranteed redemption value so there is no chance of a financial loss from their purchase. OD. The most liquid assets typically earn no or little interest. Which of the following statements is true when considering liquidity? O A. Physical assets are the most liquid type of assets. OB. Stocks have no transaction fees. O C. Bonds have a guaranteed redemption value so there is no chance of a financial loss from their purchase. OD. The most liquid assets typically earn no or little interest.

Solution
Answer- The most liquid assets usually earn 0 or little
intrest
Since these liquid assets have very low risk and therefore since
the risk is low the return is also low in these assets as compared
to other assets ,which are more riskier and thus attract more
intrests
Wrong option
Physical assets are most liquid type-This is not true(Land etc
are not very liquid)
Stocks have no transaction fees- This is untrue as the stocks
due have transaction fees attached to them
There can be financial loss in the bonds if the intrest rates
change then there can be loss .Also in case of default too there is
loss

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