Liquidity is
A) the ease with which an asset can be sold.
B) the ability to sell an asset for a fair price.
C) the degree of inflation protection an asset provides.
D) the ease with which an asset can be sold and the ability to sell an asset for a fair price.
E) All of the options are correct.

Question

Quizplus · Accepted Answer

Liquidity refers to both the ease with which an asset can be sold (how quickly it can be converted into cash) and the ability to sell that asset without significantly affecting its price, which implies selling it for a fair price.

Liquidity Is