Liquidity Refers to

question 250

Multiple Choice

Liquidity refers to

• A)the ease with a stock can be traded for a bond.
• B)the ease with which a financial security can be traded for cash.
• C)the number of times a dollar changes hands in the creation of GDP in an economy.
• D)the number of shares of stock a corporation issues.

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Definitions:

Present Expenditures

Current spending or outflows of money, usually referring to the costs or expenses a business or individual faces at the moment.

MU (Marginal Utility)

The augmented utility or pleasure achieved by consuming an extra unit of a good or service.

Marginal Cost

The outlay required to produce another unit of a product or service.

Marginal Benefit

The additional benefit to a consumer from consuming one more unit of a good or service.