Because liquid assets can be turned into cash quickly and with little loss,they have little risk associated with them and therefore provide a low rate of return for the consumer.

Question

Quizplus · Accepted Answer

Liquid assets, such as cash and savings accounts, have little risk because they can be easily converted to cash without significant loss. However, this also means that they typically provide a lower rate of return compared to investments with higher risk, such as stocks or real estate.

Because Liquid Assets Can Be Turned into Cash Quickly and with Little