'Liquidity' in financial terms is
A) a feature of money only.
B) the ease with which an asset can be sold at the published market price.
C) the best measure of risk of a financial asset.
D) to lower the rate of return for an asset.

Question

Quizplus · Accepted Answer

Liquidity refers to the ability to sell an asset quickly and easily at or near its market value. It is an important factor to consider when evaluating the risk of an investment because illiquid assets may be difficult to sell and can result in losses or missed opportunities. While money is a liquid asset, not all liquid assets are necessarily money. And liquidity is not a measure of risk or a way to lower the rate of return.

'Liquidity' in Financial Terms Is