Savers view the liquidity of financial assets as a benefit because
A)they want to be able to easily exchange their assets for something else.
B)the more liquid an asset is, the higher its rate of return, all else being constant.
C)liquid assets incur fewer tax liabilities than do illiquid assets.
D)liquid assets are a good means of saving for retirement.

Question

Quizplus · Accepted Answer

Savers want to be able to easily exchange their assets for something else, which is why they view the liquidity of financial assets as a benefit. This allows them to quickly and easily access their funds, without having to wait for a specific maturity date or penalty fees.

Savers View the Liquidity of Financial Assets as a Benefit