Sia
Question
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Posted 7 months ago
Which of the following best defines liquidity?
Choose 1 answer:
(A) The ability to convert a store of value to cash
(B) The expenses of negotiating and executing an exchange
(C) Uncertainty about the value of an asset
(D) The amount that will be repaid at the end of a bond's term
(E) Investing in several different assets with unrelated risks
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Answer from Sia
Posted 7 months ago
Solution by Steps
step 1
To define liquidity, we consider the characteristics of assets that are considered liquid. Liquidity refers to the ease with which an asset can be converted into cash without affecting its market price
Answer
A
Key Concept
Liquidity
Explanation
Liquidity is the ability of an asset to be quickly converted into cash without a significant loss in value.
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