The ability to quickly convert an asset into cash is
A) disintermediation.
B) the standard of deferred payment.
C) financial intermediation.
D) liquidity.

Question

Quizplus · Accepted Answer

The ability to quickly convert an asset into cash is referred to as liquidity. Option A (disintermediation) refers to the elimination of intermediaries in a financial transaction. Option B (the standard of deferred payment) refers to the commonly accepted method of paying for goods and services at a later date. Option C (financial intermediation) refers to the process of connecting borrowers and lenders through intermediaries such as banks.

The Ability to Quickly Convert an Asset into Cash Is