Liquidity Refers to the Ease with Which an Asset Can

question 185

Multiple Choice

Liquidity refers to the ease with which an asset can be converted into the medium of exchange without a significant loss of value.The least liquid of the assets below is

• A)real estate
• B)currency
• C)traveler's checks
• D)oil
• E)checkable deposits

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Definitions:

Reserve

Funds or resources set aside for specific future use or to cover unexpected liabilities, or the practice of conserving natural resources.

Auction

An auction is a public sale where goods or services are sold to the highest bidder.

Under Seal

A formal legal expression indicating that a document's signature has been affixed in a formal manner, typically making the document legally binding and more difficult to revoke.

Consideration

The value (such as money, a service, or an item) promised in a contract that motivates the parties to enter into the agreement.