Question

A financial asset is liquid: Group of answer choices if it can be readily exchanged for another asset or good. if it is held by the public and earning interest. only if it takes the form of cash. if it can be carried easily from one place to another.

Answer 1

if it can be readily exchanged for another asset or good

Step-by-step explanation:

An asset is liquid if it can be easily be exchanged for another asset or good or converted to cash. cash ( currency) is the most liquid asset.

an house for example is less liquid when compared to cash. this is because before it can be converted to cash or exchanged for another asset, it must first be valued, then we have to find a buyer and this process can range from days to years. this makes a house less liquid when compared with a house.