The ease of salability of marketable securities refers to
A) safety of return.
B) safety of principal.
C) safety of maturity.
D) risk of payments.

Question

Quizplus · Accepted Answer

The ease of salability of marketable securities refers to how easily and quickly they can be sold on the market. This is related to the safety of principal, as investors can generally expect to receive back the amount they invested when they sell marketable securities on the market. It is not related to the safety of return, as marketable securities can fluctuate in value and therefore do not guarantee a fixed return. It is also not related to the safety of maturity or risk of payments.

The Ease of Salability of Marketable Securities Refers to