The ability to convert financial resources into usable cash with ease is referred to as:
A) bankruptcy.
B) liquidity.
C) investing.
D) saving.
E) opportunity cost.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease of converting financial resources into cash. This is important for individuals and businesses to have access to cash quickly for unexpected expenses or to take advantage of investment opportunities. Bankruptcy refers to a legal process of declaring inability to pay debts. Investing and saving refer to different ways of allocating financial resources, while opportunity cost refers to the cost of choosing one option over another.

The Ability to Convert Financial Resources into Usable Cash with Ease