Final answer:
Liquidity is indeed the ability to quickly convert an investment into cash with minimal loss of value, and cash is an example of a highly liquid asset.
Step-by-step explanation:
Liquidity refers to the ability to convert an investment into cash quickly with little or no loss of value. For example, cash is a highly liquid asset because you can readily use it to purchase goods or services, such as buying a hamburger. By contrast, money in a savings account is less liquid because it requires extra steps to access, like visiting a bank or ATM. Stocks are considered to have high liquidity as well because they can be quickly sold for spendable money on public markets.
The statement, 'Liquidity is the ability to convert an investment into cash quickly with little or no loss of value' is True.