What is the best way to describe liquidity?
A)Positive cash flow
B)Ease of access to credit
C)Access to ready cash
D)Effective money management

Question

Quizplus · Accepted Answer

Liquidity refers to the availability of ready cash, which can be used to meet financial obligations or invest in opportunities that arise. It is an important measure of financial health and stability, and can help individuals and businesses avoid financial distress. Positive cash flow, ease of access to credit, and effective money management are all related to liquidity, but do not fully capture its meaning.

What Is the Best Way to Describe Liquidity