If a Financial Asset Is Liquid, It Is

question 32

Multiple Choice

If a financial asset is liquid, it is:

• A)considered to be a safe asset with no chance of being deleveraged.
• B)an online asset and has no physical piece of paper associated with it.
• C)a highly desirable asset.
• D)an asset that can easily be converted into cash.

---

Definitions:

Assessed Valuation

The dollar value assigned to a property for purposes of measuring applicable taxes, determined by a public tax assessor.

Taxation

The imposition of compulsory levies on individuals or entities by governments to fund public expenditures.

Market Value

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction.

Sales Tax

A tax imposed by government authorities on the sale of goods and services, paid for by the consumer at the point of purchase.