Liquidity refers to the degree of readiness of conversion of an asset into cash. true or false

Liquidity refers back to the diploma of readiness of conversion of an asset into money. true or false

Liquidity refers back to the diploma of readiness of conversion of an asset into money. The assertion is True. Liquidity is the time period that refers the provision of liquid belongings to an organization or to a market. Market liquidity is the flexibility of the market to buy or sale an asset with out making a giant change within the value of the asset.

Reply is true Clarification:

b. False Liquidity refers back to the diploma of readiness of conversion of an asset into frequent inventory. Clarification: Liquidity refers back to the capacity to simply convert an asset into money. It’s the diploma to which an asset may be rapidly bought or offered out there at a value which displays its intrinsic worth. Money is essentially the most liquid asset. Some belongings akin to shares and bonds are very liquid as a result of they are often transformed to money inside days.

The assertion is True. Step-by-step clarification: Liquidity describes the diploma to which an asset or safety may be rapidly purchased or offered out there with out affecting the asset’s value. A liquid asset is money readily available or an asset that may be readily transformed to money. An asset that may readily be transformed into money or is just like money itself as a result of the asset may be offered with little influence on its worth. Therefore, the given assertion is TRUE. (Liquidity refers back to the diploma of readiness of conversion of an asset into money).

Liquidity doesn’t confer with the diploma of readiness of conversion of an asset into frequent inventory. As a substitute, it refers back to the diploma of readiness of conversion of an asset into CASH.

Reply 6

Its true hope it helps you.

Reply 7

The reply is:  [B]:  “False” .

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