The Liquidity of an Asset

question 137

Multiple Choice

The liquidity of an asset

• A)describes the ease of conversion to cash without significant loss of value
• B)is its cash value relative to other assets
• C)indicates how much interest would flow from it if it were a financial instrument
• D)is of little concern to bank managers,since their primary goal is profit
• E)usually rises along with an asset's rate of return

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