Which of the following is not considered a liquid asset?

Real estate is not considered a liquid asset because it cannot be quickly converted into cash without a substantial time lag and potential loss in value. Liquid assets are those that can easily be bought or sold in the market with minimal impact on their price. Bank accounts, stocks, and mutual funds can typically be accessed or sold relatively quickly—stocks and mutual funds can be sold on the market during trading hours, and bank accounts allow for immediate withdrawals.

In contrast, real estate transactions often involve lengthy processes including listing, showing, and negotiating, which can take weeks or months to complete. Additionally, the real estate market can fluctuate, meaning the asset might not sell for the anticipated price when an owner tries to liquidate it. Thus, while real estate can be a valuable asset, its lack of liquidity is what distinguishes it from the other options listed.