Liquidity Refers to

question 239

Multiple Choice

Liquidity refers to

• A)the ability to purchase a very small share of a company.
• B)the ease with which an asset can be converted into a different asset.
• C)the number of times a dollar changes hands in the creation of GDP in an economy.
• D)the number of shares of stock a corporation issues.
• E)the number of bonds a firm has issued.

---

Definitions:

Market System Characteristics

Features distinctive to market economies, such as private property, profit motive, consumer sovereignty, and competition.

Specialization

The concentration of the productive efforts of individuals or firms on a limited number of activities, leading to increased efficiency.

Production

The process of creating goods or services by combining various inputs like labor, materials, and technology.

Hyperinflation

An extremely high rate of inflation, usually defined as an inflation rate in excess of 50 percent per month.