The Degree to Which an Asset Can Be Acquired or Disposed

question 238

Multiple Choice

The degree to which an asset can be acquired or disposed of without much danger of any intervening loss in nominal value is known as

• A)transaction deposits.
• B)a time deposit.
• C)liquidity.
• D)M2.

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Definitions:

Pure Rate

The interest rate exclusive of all other elements such as risk premium, inflation, or other costs often considered the real rate of interest with no adjustments.

Default Risk Premium

The additional yield that a borrower must offer to compensate lenders for the risk that the borrower may fail to make required payments.

Corporate Bond

A type of debt security issued by corporations to finance their operations, projects, or expansion plans.

Treasury Bills

Short-term government securities issued at a discount from the face value and maturing at par, used to finance government spending.