The graph shows examples of investments with high and
low liquidity.
An investment with more liquidity would be ideal for
someone who
Less
liquidity
Retirement
accounts
knows they will need cash in the near future.
knows they will need cash years from now.
wants to have a guaranteed source of income.
wants to have higher returns on their investment.
Houses and
property
Stocks, mutual
funds, bonds, CDs
More
liquidity
Savings and
checking accounts

The graph shows examples of investments with high and low liquidity An investment with more liquidity would be ideal for someone who Less liquidity Retirement a class=

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Answer:

  ... knows they will need cash in the near future.

Step-by-step explanation:

An investment with more liquidity would be ideal for someone who knows they will need cash in the near future.

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The meaning of "high liquidity" is that it can be easily converted to cash. If you know you need cash, then you need high liquidity.

The meaning of "high liquidity" is that it can be easily converted to cash. If you know you need cash, then you need high liquidity.

What is the Liquidity?

In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the price at which an asset can be sold, and how quickly it can be sold.

How to determine?

An investment with more liquidity would be ideal for someone who knows they will need cash in the near future.

The meaning of "high liquidity" is that it can be easily converted to cash. If you know you need cash, then you need high liquidity.

Learn more about the Liquidity:

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