Which of the following refers to the opportunity to withdraw your money on short notice without incurring a loss in value?

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash without incurring a significant loss in value. Therefore, option B is the correct answer. Compounding (A) refers to the process of earning interest on both the principal amount and the interest earned previously. Minimum deposit (C) is the minimum amount required to open or maintain a particular account. Rate of return (D) is the amount of profit or loss an investment has generated over a specified period, usually expressed as a percentage of the initial investment. Safety (E) refers to the degree of risk involved in an investment.

Which of the Following Refers to the Opportunity to Withdraw