Which of the following is NOT an example of a liquid asset?

A liquid asset is defined as an asset that can be quickly converted to cash without a significant loss in value. Cash, of course, is the most liquid asset since it is already in monetary form. Mutual funds also qualify as liquid assets because they can be sold at the current market price on any business day, allowing the owner to obtain cash relatively quickly.

Certificates of Deposit (CDs) are considered less liquid compared to cash and mutual funds, but they can still be redeemed for cash before maturity, albeit with potential penalties.

Real estate property does not meet the criteria for a liquid asset because selling real estate typically involves a lengthy process that can take weeks or even months. The fluctuating market conditions can also lead to significant variations in the selling price, which can make accessing cash from real estate less predictable and more complex.

In summary, real estate is considered illiquid due to the time and uncertainty involved in the selling process, making it the correct answer for identifying something that is not a liquid asset.