Liquidity refers to how
A) fast money can be transferred from one account to another account.
B) quickly, easily, and reliably an asset can be converted into a medium of exchange.
C) easily cash can be transported across national borders.
D) fast money travels throughout the economy.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be bought or sold in a market. It is defined as how quickly and easily an asset can be converted into cash or another medium of exchange without affecting its market price. Therefore, option B is the best choice as it accurately describes the concept of liquidity.

Liquidity Refers to How