​Which of the following is considered to be the most liquid asset?​

Correct option is D

Correct Answer:D Money

Liquidity refers to how easily an asset can be converted into cash without losing its value. The more quickly and effortlessly an asset can be exchanged for goods, services, or other forms of wealth, the more liquid it is.

Among the given options:

• Money is the most liquid asset because it is immediately available for transactions and does not need to be converted into another form before being used.
• Gold (Option A) is valuable but requires selling or conversion into cash, which takes time.
• Bonds (Option B) can be converted into money, but they are not as liquid as cash since they need to be sold in the market, and their price fluctuates.
• Land (Option C) is the least liquid because selling land is a long process involving legal and market considerations.

Thus, money is the most liquid asset as it serves as a medium of exchange and has immediate purchasing power.

• Liquidity ranking: Cash > Gold > Bonds > Land (from most to least liquid).
  
• M1 Money Supply includes the most liquid forms of money, such as cash, demand deposits, and checking accounts.