Liquidity Is a Measure of How ________

question 69

Multiple Choice

Liquidity is a measure of how ________.

• A) quickly an asset may be converted into cash
• B) long an asset can be used
• C) easily an asset can be exchanged for another asset
• D) quickly an asset appreciates in value

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Definitions:

U.S. Census Bureau

A key institution in the U.S. Federal Statistical System that creates statistical data on the American population and economic activities.

Disposable Income

The total funds available to households for saving and spending after subtracting income taxes.

Necessities

Items or services that are essential for basic human survival and functioning, such as food, water, and shelter.

Gross Income

The total revenue generated from sales or services before any deductions are made for expenses.