________ is the ability to buy or sell assets quickly without affecting their price.

Question

Quizplus · Accepted Answer

Liquidity refers to the ability to convert an asset into cash quickly and easily without affecting its price. This is important for investors who may need to sell their assets quickly to meet their financial needs or take advantage of market opportunities. High liquidity also ensures that the market for that asset is stable and efficient, which benefits all investors. FOREX (A) refers to the foreign exchange market, which is a market for trading currencies, and profitability (B) refers to the ability to generate a profit from investments, which is related to but not the same as liquidity. Time value of money (D) refers to the concept that a sum of money is worth more today than the same amount in the future, due to the potential to earn interest or returns on that money over time.

________ Is the Ability to Buy or Sell Assets Quickly