An asset that can be easily disposed of without high transactions costs and with relative certainty as to its value is
A)solid.
B)liquid.
C)M1.
D)M2.

Question

Quizplus · Accepted Answer

Liquid assets are those that can be easily converted into cash without incurring high transaction costs and with little to no impact on their market value. Examples of liquid assets include stocks, bonds, money market securities, and cash. Therefore, option B is the correct answer. Option A (solid) is not a financial term and is unrelated to the concept of asset liquidity. Options C and D refer to monetary aggregates and are not relevant to the question.

An Asset That Can Be Easily Disposed of Without High