The ease of converting an asset to cash with a minimum of loss is known as:
A) asset liquidity.
B) volatile liquidity.
C) core liquidity.
D) liability liquidity.
E) non-core liquidity.

Question

Quizplus · Accepted Answer

Asset liquidity refers to the ability of an asset to be quickly and easily converted to cash with a minimum of loss. This is an important concept in finance as it relates to the ability of an individual or business to meet their financial obligations in a timely manner. Highly liquid assets include cash, marketable securities, and certain types of bonds, while less liquid assets such as real estate or private equity may take longer to sell and may incur losses.

The Ease of Converting an Asset to Cash with a Minimum