Question

Rate the following bank accounts from most to least liquid: CD, savings account, checking account, money market account. a. CD, savings account, checking account, money market account b. Savings account, checking account, CD, money market account c. CD, money market account, savings account, checking account d. Checking account, savings account, money market account, CD

Answer 1

A liquid bank account is one that allows cash to be withdrawn easily and without penalty. Checking and savings accounts are the most common examples of liquid bank accounts, but money market accounts and prepaid cards can qualify too.

Savings and money market accounts don't always have the highest rates for liquid accounts. Checking accounts sometimes have the highest rates. For non-reward checking accounts, this isn't common. For most internet banks, the internet checking rates are lower than the money market or savings account rates.

hence option d is correct answer

. Checking account, savings account, money market account, CD