'Liquidity' is defined as the ease with which a given asset can be converted to a:
A)store of value.
B)unit of account.
C)medium of exchange.
D)standard of deferred payment.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash or a medium of exchange. Therefore, option C, "medium of exchange," is the correct choice. A store of value refers to an asset that can be saved and used for future purchases without losing its value, such as gold or real estate. A unit of account is a standardized unit for measuring the value of goods and services, such as a currency. A standard of deferred payment refers to the value of a currency or asset in the future, which can be used to pay off debts or make future purchases.

'Liquidity' Is Defined as the Ease with Which a Given