Liquidity is the same as
A) diversification of an investorʹs store of value.
B) easy conversion of money to an asset, allowing for loss of value.
C) easy conversion of an asset to a means of payment, allowing for loss of value.
D) easy conversion of an asset to a means of payment, with little or no loss of value.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash without significant loss of value. Therefore, the best choice is D, which accurately describes easy conversion of an asset to a means of payment with little or no loss of value.

Liquidity Is the Same as