Assets with greater liquidity
A)also typically have greater returns.
B)are generally tax-free.
C)help savers smooth spending over time.
D)are generally available only through brokers.

Question

Quizplus · Accepted Answer

Assets with greater liquidity are easier to convert into cash, which helps savers smooth their spending over time. This means they can quickly access their funds if there is an emergency or if they need to make a large purchase. However, greater liquidity does not necessarily mean greater returns, and they may still be subject to taxes. Some highly liquid assets, such as cash and bank accounts, can be opened and managed directly by the account holder without needing a broker.

Assets with Greater Liquidity