The ability of an investment to be converted to cash without a substantial loss in dollar value is called:
A)asset value.
B)liquidity.
C)growth potential.
D)fixed cost factor.
E)variable cost factor.

Question

Quizplus · Accepted Answer

Liquidity refers to how quickly and easily an asset or investment can be converted into cash without significantly affecting its value. This is crucial for investors who might need to access their funds quickly or without incurring large losses.

The Ability of an Investment to Be Converted to Cash