The liquidity of a market is measured by all of the following except:
A) price transparency.
B) number of buyers and sellers in market.
C) volume of transactions.
D) size of transactions.

Question

Quizplus · Accepted Answer

Liquidity in a market refers to how easily assets can be bought or sold without affecting the asset's price. Factors such as the number of buyers and sellers, volume of transactions, and size of transactions directly impact liquidity by influencing how quickly and easily trades can be executed. Price transparency, while important for fair trading, does not directly measure liquidity.

The Liquidity of a Market Is Measured by All of the Following