A liquid asset is an asset can be sold in a period of time at a price its fair market value.
A)relatively long; way below
B)relatively long; near
C)relatively short; way below
D)relatively short; near
E)None of the above.

Question

Quizplus · Accepted Answer

A liquid asset is an asset that can be sold quickly, typically within a relatively short period of time. This means that option C (relatively short; way below) is incorrect because liquid assets are not sold for way below market value. Option E is also incorrect because there is a clear definition for a liquid asset. Between options A, B, and D, only option D (relatively short; near) accurately describes the time frame in which a liquid asset can be sold.

A Liquid Asset Is an Asset Can Be Sold in a Period