The liquidity of an asset indicates
A) its buying power
B) the ease with which it can be converted into the medium of exchange without a significant loss of value
C) the ease with which it can be converted into another asset
D) how likely people are to convert it into the medium of exchange without a significant loss of value
E) how easy it is to buy with a check
Correct Answer:
Verified
Q44: Banks differ from other types of businesses
Q107: The ability to convert a store of
Q108: By holding highly liquid assets to guard
Q109: A bank can increase the money supply
Q110: To maximize its profit,a bank will
A)minimize actual
Q112: Liquidity contributes to the bank's achievement of
Q113: A bank manager who wants to increase
Q114: When a member bank sells U.S.government securities
Q115: In the federal funds market,
A)banks make loans
Q116: Banks borrow excess reserves from each other
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