Liquidity is a measure of how ________.
A) quickly an asset may be converted into cash
B) long an asset can be used
C) easily an asset can be exchanged for another asset
D) quickly an asset appreciates in value

Question

Quizplus · Accepted Answer

Liquidity is the measure of how quickly an asset can be converted into cash, which means how easily a person can sell the asset and receive cash in return. Options B, C, and D are not relevant to the concept of liquidity.

Liquidity Is a Measure of How ________