If a security can easily be converted to cash without a loss in value, it
A)is liquid.
B)has a high after-tax yield.
C)has high credit risk.
D)is illiquid.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset or security can be converted into cash without a significant loss in value. Therefore, if a security can easily be converted to cash without a loss in value, it is considered liquid.

If a Security Can Easily Be Converted to Cash Without