Securities that can be easily converted into cash on short notice at a price that is close to the original cost generally have a:
A)low liquidity premium.
B)high maturity risk premium.
C)high inflation premium.
D)low budget risk premium.
E)high real risk premium.

Question

Quizplus · Accepted Answer

Securities that can be easily converted into cash on short notice at a price close to the original cost have high liquidity and therefore have a low liquidity premium.

Securities That Can Be Easily Converted into Cash on Short