Liquidity is the
A)ease with which a financial instrument can be converted to cash without loss of value.
B)rate at which the economy is changing.
C)term used to describe the Federal Reserve quasi-independent government relationship.
D)amount of time a borrower has to repay a debt.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which a financial instrument, such as stocks or bonds, can be converted to cash without loss of value. It is an important characteristic for investors who may need to access their funds quickly.

Liquidity Is the