A highly liquid asset
A) can be converted into a means of payment easily without loss of value.
B) is highly leveraged.
C) generally has a very limited market for its resale.
D) has high transaction costs associated with its sale.

Question

Quizplus · Accepted Answer

A highly liquid asset can be easily converted into a means of payment without loss of value. This means that the asset can be quickly and easily sold in the market without undergoing significant price fluctuations or transaction costs. This makes it a desirable asset to hold as it can be easily converted into cash when needed.

A Highly Liquid Asset