Which term refers to the ability of an asset to be quickly converted into cash?

Question

Accepted Answer

Liquidity - Liquidity means how easily and quickly an asset can be converted into cash without affecting its price. Assets like cash and bank deposits have high liquidity, while real estate and long-term investments have low liquidity. In finance, liquidity is an important measure of financial flexibility and stability.

MCQ Detailed View

Which term refers to the ability of an asset to be quickly converted into cash?

Detailed Explanation

Discussion

Leave a Comment

MCQ Detailed View

Which term refers to the ability of an asset to be quickly converted into cash?

Detailed Explanation

Related Questions

In cash flow analysis, two projects are compared using a common life approach, which is classified as&#8230;

Other factors held constant, a project with lesser liquidity is usually due to ____________?

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?&#8230;

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value&#8230;

Discussion

Leave a Comment

In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…