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6 May, 12:37

Liquidity refers to a. the ease with which an asset is converted to the medium of exchange. b. the measurement of the intrinsic value of commodity money. c. the measurement of the durability of a good. d. how many time a dollar circulates in a given year.

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  1. 6 May, 15:17
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    a. the ease with which an asset is converted to the medium of exchange

    Explanation:

    Liquidity measures how quick an asset can be converted to cash.

    Money, cash is the most liquid asset. This is why it can be easily used as a medium of exchange.

    Real estate is considered illiquid because it cannot be easily converted to cash.

    Stocks are relatively liquid because they can be quite easily converted to cash.

    Velocity measures how many times a dollar circulates in a given year.

    Money can be used to measure the intrinsic value of a commodity.
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Home » Business » Liquidity refers to a. the ease with which an asset is converted to the medium of exchange. b. the measurement of the intrinsic value of commodity money. c. the measurement of the durability of a good. d.
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