The difficulty of converting savings and investments to cash is referred to as ____________ risk.

Name: The difficulty of converting savings and investments to cash is referred to as ____________ risk.
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Question

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Liquidity risk refers to the difficulty of converting savings and investments to cash. This risk is particularly important to consider for emergency funds or short-term investments since a lack of liquidity may result in having to sell investments at a loss or not being able to access funds when needed.

The Difficulty of Converting Savings and Investments to Cash Is