Liquidity Is

question 53

Multiple Choice

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)the ease with which an asset can be sold and the ability to sell an asset for a fair price.

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Definitions:

Futures Contracts

Legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Spot Price

The current market price at which a particular asset can be bought or sold for immediate delivery.

Arbitrage Opportunities

Situations where a trader can make a profit from the price difference of a security or commodity in two different markets without risk.

Spot Price

The current market price at which a particular asset, such as a commodity, currency, or security, can be bought or sold for immediate delivery.