Which of the Following Best Describes the Concept of Liquidity

Which of the following best describes the concept of liquidity?

A) It is a measure of an asset's ability to be quickly converted to cash without risk of loss.
B) It is a measure of a firm's long-term ability to pay its obligations as they mature.
C) It indicates an entity's ability to respond to unexpected needs
D) It indicates a firm's ability to take advantage of opportunities by taking actions that alter the amounts and timing of cash flows.