Liquidity is the same as
A) easy conversion of money to an asset, allowing for loss of value.
B) diversification of an investor's store of value.
C) easy conversion of an asset to a means of payment, allowing for loss of value.
D) easy conversion of an asset to a means of payment, with little or no loss of value.

Question

Quizplus · Accepted Answer

Liquidity refers to how quickly and easily an asset can be converted into cash (a means of payment) without significant loss of value. Option D accurately describes this concept, emphasizing the minimal or no loss in value during the conversion process.

Liquidity Is the Same as