The degree to which an asset can be acquired or disposed of without much danger of any intervening loss in nominal value is known as
A) transaction deposits.
B) a time deposit.
C) liquidity.
D) the opportunity cost of holding cash.

Question

Quizplus · Accepted Answer

The word liquidity refers to the ease of converting an asset into cash without affecting its nominal value. The higher the liquidity of an asset, the easier it is to buy or sell without incurring a significant loss. This is why liquidity is regarded as a measure of an asset's marketability or tradability. Options A, B, and D do not relate to the definition of liquidity.

The Degree to Which an Asset Can Be Acquired or Disposed