Question 109 • 26-27 Ignite Technical Math-Financial Math - MA2007
Liquidity means how quickly and easily you can access money without penalty or loss. A checking account is usually easiest to use for payments, followed by a savings account and then a money market account, which may have limits or requirements for withdrawals. A certificate of deposit (CD) is least liquid because funds are generally locked in for a set term, and early withdrawal may incur a penalty. Therefore, the order is checking account, savings account, money market account, CD.
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