Bonds are a __________ liquid asset than other loans because they _____________.
A) more; are standardized
B) more; are guaranteed from default by the government
C) less; are standardized
D) less; are guaranteed from default by the government

Question

Quizplus · Accepted Answer

Bonds are more liquid than other loans because they are standardized, meaning they can be easily bought and sold in secondary markets. This makes them more attractive to investors as they are easier to trade and provide more liquidity. While bonds may have some level of government guarantee or insurance, it is not a guarantee of default protection.

Bonds Are a __________ Liquid Asset Than Other Loans Because