Which of the following is an example of a low liquidity asset?

The selection of micro-cap stocks as an example of a low liquidity asset is accurate because these stocks typically have a smaller market capitalization and lower trading volumes compared to large-cap stocks or ETFs. This results in fewer available buyers and sellers for micro-cap stocks, which can lead to larger price swings and more difficulty in executing trades without significantly impacting the stock price.

Additionally, micro-cap stocks are often traded on smaller exchanges or over-the-counter markets rather than major exchanges, which can contribute to their lower liquidity. In contrast, assets like publicly traded large-cap stocks and ETFs are characterized by high trading volumes and market participation, which enhances their liquidity. Money market accounts generally have high liquidity as they provide easy access to cash and are designed for short-term investments, making it quick and easy to encash funds without losing value.