If a financial asset is liquid, it is:
A)considered to be a safe asset with no chance of being deleveraged.
B)an online asset and has no physical piece of paper associated with it.
C)a highly desirable asset.
D)an asset that can easily be converted into cash.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash without significantly affecting its market price. Therefore, a liquid asset is one that can easily be turned into cash.

If a Financial Asset Is Liquid, It Is