An Asset Is Liquid If

question 15

Multiple Choice

An asset is liquid if

• A) it earns interest.
• B) it is backed by a government guarantee.
• C) it can be exchanged for other items of value without high transaction costs.
• D) All of the above are correct.

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Definitions:

Month-to-Month Tenancy

A type of rental agreement that does not have a set end date but continues on a monthly basis until either party decides to terminate it.

Tenancy at Will

A rental agreement allowing a tenant to occupy property for an indefinite period, terminable by either landlord or tenant at any time.

Tenancy at Sufferance

A situation where a tenant remains in the property without the landlord's consent after the lease period has ended.

Long-Term Leases

Lease agreements that extend for a substantial period of time, often more than one year, used frequently in real estate and equipment leasing.