QuestionJuly 22, 2025

The liquidity of an asset indicates its buying power the ease with which it can be converted into the medium of exchange without a significant loss of value the ease with which it can be converted into another asset how likely people are to convert it into the medium of exchange without a significant loss of value how easy it is to buy with a check

The liquidity of an asset indicates its buying power the ease with which it can be converted into the medium of exchange without a significant loss of value the ease with which it can be converted into another asset how likely people are to convert it into the medium of exchange without a significant loss of value how easy it is to buy with a check
The liquidity of an asset indicates
its buying power
the ease with which it can be converted into the medium of exchange without a significant loss of value
the ease with which it can be converted into another asset
how likely people are to convert it into the medium of exchange without a significant loss of value
how easy it is to buy with a check

Solution
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Answer

The ease with which it can be converted into the medium of exchange without a significant loss of value Explanation 1. Define Liquidity Liquidity refers to the ease with which an asset can be converted into the medium of exchange (cash) without a significant loss of value.

Explanation

1. Define Liquidity<br /> Liquidity refers to the ease with which an asset can be converted into the medium of exchange (cash) without a significant loss of value.
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