ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit
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Debt
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Liquidity
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Swap rate
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Detailed explanation-1: -Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price.
Detailed explanation-2: -Current assets are those assets which can be converted into cash or can be used to pay off liabilities within a time span of 12 months, i.e. one year. Some of the examples of current assets are cash, cash equivalents, inventories, debtors, bills receivables, etc.
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: -Liquidity describes your ability to exchange an asset for cash. The easier it is to convert an asset into cash, the more liquid it is. And cash is generally considered the most liquid asset. Cash in a bank account or credit union account can be accessed quickly and easily, via a bank transfer or an ATM withdrawal.
Detailed explanation-5: -The three main types are central bank liquidity, market liquidity and funding liquidity.