The more liquid an asset is relative to alternative assets,holding everything else unchanged,the more desirable it is,and the greater the quantity demanded.

Question

Quizplus · Accepted Answer

This statement is true because the higher the liquidity of an asset, the more easily and quickly it can be converted into cash without significant loss in value. This makes it more attractive to investors and therefore leads to a higher quantity demanded.

The More Liquid an Asset Is Relative to Alternative Assets,holding