Question

liquidity risk is
A.) the chance that investors will not be able to turn investments back into cash quickly enough to meet their financial needs.
B.) the chance that borrowers will not be able to repay their loan.
C.) the chance that investors will never be able to turn investments back into cash.
D.) the chance that investors will not have enough investments.

Answer 1

liquidity is the idea of how easy it is to turn into cash

cash itself is very liquid since it moves the most easiest

real estate is not so liquid since you cannot buy a piece of a house or sell a piece of a house

-----------------

liquidity risk is the risk of whatever you bought not being able to sell it into cash quickly enough

http://www.investopedia.com/terms/l/liquidityrisk.asp

so say you were in debt and you had some stocks you wanted to sell. There's a risk that you may not be able to sell the stocks in time to make the debt payment

Answer 2

so what would the answer be ???

Answer 3

I just posted it more or less. Read over what I wrote

Answer 4

if you have something that isn't very liquid you can't turn that investment (eg: stock) into cash easily

Answer 5

it didn't say anything about any of the answers I put with my question

Answer 6

liquidity risk is...
...the chance that investors will not be able to turn investments back into cash quickly enough to meet their financial needs.


make sure you have this on one of your flash cards or in your notes

Answer 7

thank you

Answer 8

that answer was wrong