What is the best way to describe liquidity?
A)Positive cash flow
B)Access to credit
C)Access to ready cash
D)Effective money management

Question

Quizplus · Accepted Answer

Liquidity refers to the ability of an individual or entity to access ready cash or easily convert assets into cash without affecting their market value. Positive cash flow and effective money management may contribute to liquidity, but they do not define it. Access to credit may increase liquidity, but it is not the same as having ready cash available.

What Is the Best Way to Describe Liquidity