The ease with which one asset can be converted into another asset or into goods and services is called:

Question

Quizplus · Accepted Answer

Liquidity refers to the ease of converting an asset into cash or its equivalent. It is an important characteristic of an asset as it provides the ability to quickly and easily meet financial obligations or take advantage of investment opportunities. The other options, durability, divisibility, portability, and utility, are important characteristics of assets but do not directly relate to the ease of conversion.

The Ease with Which One Asset Can Be Converted into Another