The investment with the least liquidity among the options provided is a house. Here's why:
1. House: Houses are considered illiquid assets because they cannot be easily or quickly converted into cash without potentially incurring significant transaction costs or delays. Selling a house typically takes time due to market conditions, finding a buyer, and completing the necessary paperwork, which makes it less liquid compared to other investments.
2. Mutual Fund: Mutual funds are more liquid than houses since they can be bought or sold relatively quickly on the open market. However, certain mutual funds may have restrictions on how often you can buy or sell shares, affecting their liquidity to some extent.
3. Checking Account: Checking accounts are highly liquid as they provide easy access to cash. You can withdraw money from a checking account using various methods such as ATMs, checks, or online transfers, making it one of the most liquid investment options.
4. Small Business: Small businesses can vary in terms of liquidity depending on factors such as the industry, market demand, and the ease of selling the business. In general, selling a small business can take time and may involve complex negotiations, making it less liquid compared to a checking account but potentially more liquid than a house.
In conclusion, while houses have the least liquidity among the options listed, checking accounts are the most liquid, followed by mutual funds and small businesses.
