The degree to which an asset can be acquired or disposed of without much loss of nominal value or transaction costs is known as
A) fiat money.
B) liquidity.
C) fiducia.
D) credit.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be bought or sold without significant loss of nominal value or transaction costs. Assets that are highly liquid are easily bought or sold in the market at a fair price. In contrast, assets that are illiquid may be difficult to sell quickly, potentially resulting in a substantial loss or transaction costs. Choices A, C, and D are not correct definitions of liquidity.

The Degree to Which an Asset Can Be Acquired or Disposed