The degree to which an asset can be acquired or disposed of without much danger of any intervening loss in nominal value is known as
A)transaction deposits.
B)a time deposit.
C)liquidity.
D)M2.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash without causing any significant change in its price. An asset that is highly liquid can be bought or sold quickly in the market without incurring significant transaction costs, whereas an asset that is illiquid may be difficult to sell quickly or may have to be sold at a discount to its market value. Therefore, assets with higher levels of liquidity are considered to have lower risk than assets with lower levels of liquidity. The other options are not related to the concept of liquidity.

The Degree to Which an Asset Can Be Acquired or Disposed