When an Asset Is Described as Being Highly Liquid, Which

question 394

Multiple Choice

When an asset is described as being highly liquid, which one of the following characteristics does it possess?

• A) It earns a high rate of interest, so its purchasing power is maintained when prices rise.
• B) It is easily and readily converted into money without any loss in purchasing power.
• C) The face value of the asset is somewhat less than its value when converted into currency.
• D) The asset holds its value over time.

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Definitions:

Omission Training

A learning process where a desired behavior is reinforced by the removal of an undesired outcome.

Stimulus Generalization

This refers to the psychological phenomenon where a response that has been learned to one stimulus is evoked by other, similar stimuli.

Operant Conditioning

A training mechanism in which the degree of a behavior is controlled by the application of rewards or punishments.

Animal

A living organism that feeds on organic matter, typically having specialized sense organs and nervous system and able to respond rapidly to stimuli.