A financial institution that has ready access to immediately spendable funds at reasonable cost and at precisely the time those funds are needed is considered:
A)risk-free.
B)liquid.
C)efficient.
D)profitable.
E)None of the options is correct.

Question

Quizplus · Accepted Answer

The term "liquid" refers to the ability of a financial institution to easily convert assets into cash without encountering significant loss. Having ready access to immediately spendable funds is considered liquid, which is desirable because it allows the institution to meet its financial obligations in a timely manner.

A Financial Institution That Has Ready Access to Immediately Spendable