Liquidity refers to how:
A) easy an asset is to convert immediately to cash without losing value.
B) quickly the same dollar changes hands in the economy.
C) quickly the average household spends its disposable income.
D) easy money converts to assets in an economy.

Question

Quizplus · Accepted Answer

Liquidity refers to how easily an asset can be converted to cash without losing value. The greater the liquidity of an asset, the easier it is to sell or convert to cash quickly.

Liquidity Refers to How