The ease with which an asset can be converted to money is its
A) liquidity.
B) adaptability.
C) accessibility.
D) rigidity.

Question

Quizplus · Accepted Answer

Liquidity measures how quickly and easily an asset can be converted into cash without losing value. This is an important factor for investors and businesses when deciding where to allocate their funds. Adaptability, accessibility, and rigidity do not relate to this concept.

The Ease with Which an Asset Can Be Converted to Money