Liquidity is:
A)the ease with which an asset can be sold.
B)the ability to sell an asset for a fair price.
C)the degree of inflation protection an asset provides.
D)all of the above.
E)both A and B.

Question

Quizplus · Accepted Answer

Liquidity refers to the ease with which an asset can be sold and the ability to sell it for a fair price. It does not relate to inflation protection, so option C is incorrect. Therefore, the best choice is E, which includes both A and B.

Liquidity Is