What is the definition of liquidity?

Select the best answer from the choices provided.
the size and speed of changes in an asset's value
the ease with which an asset can be converted to its full cash value
the value an asset loses to inflation and external costs
the ability of an asset to rise in value during inflation

Question

What is the definition of liquidity?


Select the best answer from the choices provided.
the size and speed of changes in an asset's value
the ease with which an asset can be converted to its full cash value
the value an asset loses to inflation and external costs
the ability of an asset to rise in value during inflation

sagewilson · Answer

liq·uid·i·ty
liˈkwidədē/
nounFinance
noun: liquidity

    the availability of liquid assets to a market or company. <--
        liquid assets; cash. <--