When an asset is described as being highly liquid, which one of the following characteristics does it possess?
A) It earns a high rate of interest, so its purchasing power is maintained when prices rise.
B) It is easily and readily converted into money without any loss in purchasing power.
C) The face value of the asset is somewhat less than its value when converted into currency.
D) The asset holds its value over time.

Question

Quizplus · Accepted Answer

When an asset is described as highly liquid, it means that it can be easily and quickly converted into cash without any significant loss in value or purchasing power.

When an Asset Is Described as Being Highly Liquid, Which