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Select the correct answer. Which investment option is the most illiquid? A. IRAs B. stocks C. mutual funds D. bonds

Question

Select the correct answer.
Which investment option is the most illiquid?
A. IRAs
B. stocks
C. mutual funds
D. bonds

Select the correct answer. Which investment option is the most illiquid? A. IRAs B. stocks C. mutual funds D. bonds

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EllisElite · Tutor for 8 years

Answer

### A. IRAs

Explain

## Step1: Define Illiquidity<br />### Illiquidity refers to how quickly an asset can be converted into cash without affecting its price.<br />## Step2: Evaluate Each Option<br />### IRAs (Individual Retirement Accounts) often have penalties and restrictions on withdrawals before retirement age, making them more illiquid.<br />### Stocks can generally be sold on stock exchanges quickly, making them relatively liquid.<br />### Mutual funds can be redeemed at the end of the trading day, providing moderate liquidity.<br />### Bonds can sometimes be sold fairly easily, but their liquidity can vary based on the market.
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