Liquidity refers to
A) the ease with which an asset is converted to the medium of exchange.
B) a measurement of the intrinsic value of commodity money.
C) the suitability of an asset to serve as a store of value.
D) how many time a dollar circulates in a given year.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be converted into cash or other means of payment. The more liquid an asset is, the easier it is to sell or exchange for cash without losing value. The level of liquidity is an important consideration for investors and financial institutions.

Liquidity Refers to