What is the ease with which a financial security can be exchanged for money?
A)liquidity
B)the face value
C)risk
D)the rate of return

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which a financial security can be exchanged for money. It is an important consideration for investors as it allows them to easily buy and sell securities. The higher the liquidity, the easier it is to buy and sell the security, which is generally considered favorable. The face value, risk, and rate of return are important factors, but do not directly relate to the ease of buying and selling the security.

What Is the Ease with Which a Financial Security Can