A savings account is the least liquid option among savings, checking, credit, and investment accounts due to the limitations in accessing funds.
The least liquid of the options provided is a savings account. Savings accounts are considered less liquid because accessing the funds typically requires a visit to the bank or ATM, unlike checking accounts or credit accounts.
Liquidity refers to how quickly an asset can be converted to cash with minimal loss in value. Savings accounts are less liquid compared to checking accounts, credit accounts, or investment accounts.
The balance sheet is organized in order of liquidity, with cash being the most liquid asset and least liquid assets appearing near the bottom.
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