Loans are more liquid than bonds because they are more standardized than bonds.

Question

Quizplus · Accepted Answer

This statement is incorrect. Bonds are more standardized than loans and therefore more liquid. Bonds typically have clear terms and conditions, including regular interest payments and a defined maturity date, making them easier to trade in secondary markets. Loans, on the other hand, may have varying terms and conditions depending on the borrower and lender, making them less standardized and potentially less liquid.

Loans Are More Liquid Than Bonds Because They Are More