To say an asset is liquid implies that:
A) we are focusing on a category of assets that are in a physically liquid form, like oil.
B) we are considering assets that may be readily converted into a means of payment.
C) we are considering any asset that can be sold.
D) we are only considering U.S. currency.

Question

Quizplus · Accepted Answer

When an asset is considered liquid, it means that it can be easily and quickly sold or converted into cash without significant loss of value. Therefore, it is closely related to the ability of an asset to be readily converted into a means of payment.

To Say an Asset Is Liquid Implies That