Instruction:
Classify each of the following financial assets as either liquid or illiquid; checking accounts, savings accounts, certificate of deposits (CDs), Stocks, Bonds, mutual funds, Real estate investment trusts (REITs), Exchange Traded Funds (ETFs), 401K, Investment Art, Physical Property.

Response:
Liquid assets are those assets that can be very quickly sold without significant loss in value. This demands a healthy a vibrant market (demand) for these assets the most relatable example being money. Given this definition assets like checking accounts, individual stocks, Exchange Traded Funds, Real estate Investment Trusts, and some types of highly popular short-term bonds are considered highly liquid. Selling these assets immediately and without loss on face value is trivial and non-restricted. Assets such as Mutual Funds which have restrictions on selling, Certificates of Deposits which tie your money up for a length of time, Investment Art, and Physical Property are often considered illiquid as it is either not allowed by contract or there simply isn't enough interest in a market to be able to sell these assets in a timely fashion and without loss of value.