An automobile is an asset, but it is not liquid because:
A) the transactions costs for turning it into money are high.
B) the owner may still be making payments on the loan.
C) the automobile may not be in good repair.
D) the automobile cannot be sold without a loss in value.

Question

Quizplus · Accepted Answer

An automobile is an asset, but it is not liquid because the transactions costs for turning it into money are high. This means that selling a car involves significant time and expense, which makes it less easily and quickly convertible to cash.

An Automobile Is an Asset, but It Is Not Liquid