Liquidity _.
A) is how quickly an asset loses its worth
B) increases when a consumer has more credit cards
C) is the property of being instantly convertible into money
D) increases when a country owns gold

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash without loss of value. Therefore, the best choice is C, which correctly defines liquidity as the property of being instantly convertible into money. None of the other choices accurately describe liquidity.