An Asset's Liquidity Depends Upon

question 12

Multiple Choice

An asset's liquidity depends upon

• A) the absolute size of its value and how long it takes to sell the asset at market value.
• B) how long it takes to sell the asset at market value and the costs of selling the asset.
• C) the costs of selling the asset and the fraction of its value that can be obtained if it is sold immediately.
• D) the fraction of its value that can be obtained if it is sold immediately and the absolute size of its value.
• E) the value of the asset at time of sale and the costs of selling the asset.

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Definitions:

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