The definition of liquidity is how:
A) easily an asset may be sold.
B) long an asset can be used.
C) easily an asset can be exchanged for another asset.
D) short an operating cycle is.

Question

Quizplus · Accepted Answer

Liquidity is a measure of how easily and quickly an asset can be sold or converted into cash without significant loss in value. Choice A accurately reflects this definition, while choices B, C, and D do not.

The Definition of Liquidity Is How