An Asset That Can Be Converted Quickly into Cash at a Low

question 97

Multiple Choice

An asset that can be converted quickly into cash at a low transaction cost is known as

• A)a liquid asset.
• B)deposits.
• C)credit card
• D)None of the above is correct.

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Definitions:

5 C's of Credit

The 5 C's of Credit refer to the five key factors that lenders consider when evaluating a borrower's creditworthiness: character, capacity, capital, collateral, and conditions.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default.

Credit Obligations

The responsibilities to repay debt incurred through borrowing or credit agreements.

Partially Assembled

Refers to products or goods that have been partially put together but require additional assembly or work to be considered complete.