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In: Economics

describes the ease of conversion to cash without significant loss of value


The liquidity of an asset 

describes the ease of conversion to cash without significant loss of value 

is its cash value relative to other assets 

indicates how much interest would flow from it if it were a financial instrument 

is of little concern to bank managers, since their primary goal is profit 

usually rises along with an asset's rate of return

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Expert Solution

Ease of conversion to cash without significant loss of value

The liquidity of an asset is predominantly the easy conversion of an asset into cash with very little effect on value. Some of the instruments that are highly liquid are stocks, bonds, and promissory notes.

Rahul Sunny answered 2 years ago
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