Which type of investment can typically be easily converted to cash?

Marketable securities are financial instruments that can be easily bought and sold in the financial markets; hence, they are highly liquid and can be quickly converted into cash. This category includes stocks, bonds, and other securities that are traded on exchanges, allowing investors to sell them with relative ease when they need liquidity.

The nature of marketable securities provides a clear advantage in terms of converting to cash, as they have established markets with numerous buyers and sellers. This liquidity is often a key consideration for investors who may require quick access to funds.

In contrast, real estate investments usually involve substantial transaction costs, lengthy procedures, and market conditions that can affect the timing and price of a sale, making them less liquid. Long-term bonds, while they can be sold, may not have the same immediacy or market depth as marketable securities, particularly if held to maturity. Lastly, art and collectibles are typically illiquid investments since finding a buyer can take time, and they may require valuation and negotiation, making them difficult to convert into cash quickly.

Thus, the ability to easily convert an investment to cash favors marketable securities over the other options presented.