The measure of how easily a particular asset can be converted quickly to cash without much loss of value is called:
A) liquidity.
B) risk.
C) intermediation.
D) default line.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted to cash without loss of value. This is an important measure of an asset's value to investors and creditors. The more liquid an asset is, the easier it is to sell or trade it for cash, which makes it a more valuable investment or collateral. Risk, intermediation, and default line are all related to finance, but they do not refer specifically to the measure of an asset's liquidity.

The Measure of How Easily a Particular Asset Can Be