An asset is liquid when it:
A) is able to be converted into another form of asset over time.
B) appreciates in value over time.
C) can be converted into another form of asset only with notable cost.
D) can be converted into money easily, quickly, and without loss of value.

Question

Quizplus · Accepted Answer

An asset is considered liquid if it can be quickly and easily converted into cash without significant loss of value, which is what option D describes.

An Asset Is Liquid When It