Liquidity is

Question

Liquidity is

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Liquidity refers to the ease with which an asset can be converted into a means of payment, such as cash or other forms of currency. It is a measure of how quickly and easily an asset can be bought or sold without affecting its price. For example, cash is considered the most liquid asset as it can be easily exchanged for goods and services, but real estate is considered a relatively illiquid asset as it can take a long time to sell and may require substantial time and effort to be converted into cash.

Liquidity Is