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

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash or used to make purchases. It is the property of being instantly convertible into money. Therefore, option D is the correct answer. Option A is incorrect because having more credit cards does not necessarily increase liquidity. Option B is also incorrect as a country owning gold does not necessarily increase its liquidity. Option C is incorrect as the definition is opposite - liquidity indicates how quickly an asset can be converted into cash, not how quickly it loses its worth.