The Ease with Which an Investment Can Be Converted to Cash

question 111

Multiple Choice

The ease with which an investment can be converted to cash without a substantial loss in dollar value is called the

• A)asset value.
• B)liquidity factor.
• C)immediate quotient.
• D)fixed cost factor.
• E)variable cost factor.

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Definitions:

Selective Abstraction

A cognitive distortion where an individual focuses on a single negative detail or event, often ignoring the broader context of a situation.

Dichotomous Thinking

A cognitive distortion involving seeing things in black and white categories or all or nothing terms, without recognizing the middle ground.

Distancing

The emotional or physical detachment an individual may experience or enact as a coping mechanism or response to stress.

Upsetting Thoughts

Thoughts that cause emotional distress or discomfort.