A liquid asset is:
A) an asset that can be used for payments,or can quickly and without loss of value be converted to an asset that can be used for payments.
B) an asset that cannot be used for payments,or can quickly and without loss of value be converted to an asset that can be used for payments.
C) a very narrowly accepted means of payment.
D) gold and only gold.

Question

Quizplus · Accepted Answer

A liquid asset is one that can be easily and quickly converted into cash without incurring significant loss of value. This includes assets like cash, stocks, and bonds, which can be used for payments or quickly traded for their cash value. Option B is incorrect because an asset that cannot be used for payment or easily converted to cash is not considered a liquid asset. Option C is incorrect because a narrowly accepted means of payment is not necessarily a liquid asset. Option D is incorrect because gold is just one example of a liquid asset, but not the only one.

A Liquid Asset Is