All other things constant, securities that are extremely liquid:
A)earn higher rates of return than securities that are less liquid.
B)have a longer maturity than less liquid securities.
C)have lower risk than less liquid securities.
D)a.and b.
E)b.and c.

Question

Quizplus · Accepted Answer

Liquid securities are typically associated with lower risk because they can be easily bought or sold in the market without significantly affecting their price.

All Other Things Constant, Securities That Are Extremely Liquid