To say an asset is liquid implies that:
A)We are focusing on a category of assets that are in a physically liquid form, like oil
B)We are considering assets that may be readily converted into a means of payment
C)We are considering any asset that can be sold
D)We are only considering U.S.currency

Question

Quizplus · Accepted Answer

To say an asset is liquid means that it can be easily converted into cash, or used as a means of payment. This typically applies to assets such as stocks, bonds, and certain types of securities, which can be readily sold or traded on the open market. The fact that an asset is considered liquid is an important consideration for investors and financial analysts, as it can impact factors such as market volatility and investor confidence.

To Say an Asset Is Liquid Implies That