Liquidity refers to
A) the ease with which an asset can be acquired or disposed of without incurring high transaction costs.
B) the expected return from an asset.
C) the amount of indebtedness held against an asset.
D) the net worth of the individual in question.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be acquired or disposed of without incurring high transaction costs. It is the ability to convert an asset into cash quickly without affecting its market value.

B, C, and D are incorrect as they do not relate to the definition of liquidity.

Liquidity Refers to