ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
This term refers to how easily an asset can be converted to cash:
A
Liquidity
B
Commodity
C
Currency
D
Eurobond
Explanation: 

Detailed explanation-1: -Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. Cash is the most liquid of assets, while tangible items are less liquid.

Detailed explanation-2: -Financial liquidity refers to how easily assets can be converted to ready cash without affecting its market price. Assets like stocks and bonds are very liquid and can be converted into cash within days.

Detailed explanation-3: -Securitization involves taking an illiquid asset (or group of assets) and consolidating with other assets in an effort to create a more liquid asset that can be sold to another party.

Detailed explanation-4: -being a liquid, it’s usually used in a financial sense. Financially, liquidity refers to having access to cash or things you can sell and turn into cash. In other words, you have good cash flow. Liquidity can also apply to any situation that is marked by fluidity or runniness.

Detailed explanation-5: -Cash or currency: The cash you physically have on hand. Bank accounts: The money in your checking account or savings account. Accounts receivable: The money owed to your business by your customers. Mutual funds: A fund that pools money from many different investors into a diverse portfolio. More items

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