A market is liquid if
A) trades are executed quickly.
B) market prices don't fluctuate sharply on successive trades
C) both a) and b) are correct.
D) if fees are low.

Question

Quizplus · Accepted Answer

A market is considered liquid if trades can be executed quickly and smoothly without causing large fluctuations in the market price. Both options A and B are correct and contribute to the overall liquidity of a market. Low fees may also be a factor, but it is not the determining factor in market liquidity. Therefore, the best choice is C.

A Market Is Liquid If