Liquidity is
A)the ease with which an asset can be sold.
B)the ability to sell an asset for a fair price.
C)the degree of inflation protection an asset provides.
D)the ease with which an asset can be sold and the ability to sell an asset for a fair price.

Question

Quizplus · Accepted Answer

Liquidity refers to both the ease with which an asset can be sold and the ability to sell it for a fair price. This means that the correct answer would be option D, as it encompasses both elements of liquidity. Option A is incomplete as it only refers to the ease of selling without considering fair pricing, while option B only considers fair pricing without mentioning ease of selling. Option C refers to inflation protection, which is a different concept altogether.

Liquidity Is