Liquidity is
A)the property of being easily convertible into a means of payment without loss in value.
B)the degree of certainty of the price of an asset.
C)a high-risk asset.
D)the net flow of gold into the Bank of Canada.
E)the same as currency.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease and speed at which an asset can be converted into cash or another form of payment without incurring a significant loss in value. Highly liquid assets are those that can be quickly bought or sold at a fair market price.

Liquidity Is