Which investment would have the lowest liquidity?

• A. Deposits.
• B. Corporate bonds.
• C. Shares listed on a stock market.
• D. Property.

Answer: (D)

Liquidity is about how quickly you can turn an asset into cash without taking a big loss. Deposits are extremely liquid because you can usually access the funds instantly (up to any insured limit). Shares on a stock market and corporate bonds can be sold relatively quickly, typically within days, though you may face price changes and bid-ask spreads, especially in tougher markets. Property, on the other hand, takes much longer to convert to cash. Selling a property involves finding a buyer, marketing costs, negotiations, legal transfers, and often commissions; the process can take weeks or months and may require price concessions to close a sale. Because of these longer, more complex steps and higher uncertainty about the sale price, property has the lowest liquidity among the options.