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Principles of Investment

Question 14 • SNHS NV-Civics and Economics

Investments with more liquidity include .

Answer
A
real estate
B
retirement plans
C
savings accounts

Explanation

Liquidity means how quickly and easily an investment can be turned into cash without losing much value. Money in a savings account is readily accessible, while selling real estate can take time and retirement-plan withdrawals may have restrictions or penalties. Therefore, savings accounts are more liquid.

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