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A

Anonymous

Feb 10, 2025

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

Is liquidity defined as the ease with which an asset can be converted into cash? True or false?

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7 Answers

A
Anonymous

Nov 19, 2024

Liquidity refers to the degree of readiness of conversion of an asset into cash. The statement is True. Liquidity is the term that refers the availability of liquid assets to a company or to a market. Market liquidity is the ability of the market to purchase or sale an asset without making a big change in the price of the asset.
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A
Anonymous

Oct 26, 2024

 b. False Liquidity refers to the degree of readiness of conversion of an asset into common stock. Explanation:Liquidity refers to the ability to easily convert an asset into cash. It is the degree to which an asset can be quickly purchased or sold in the market at a price which reflects its intrinsic value. Cash is the most liquid asset. Some assets such as stocks and bonds are very liquid because they can be converted to cash within days.
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Jude Hagenes IV

Jan 21, 2025

The statement is True.Step-by-step explanation: Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's price. A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted into cash or is similar to cash itself because the asset can be sold with little impact on its value.Hence, the given statement is TRUE. (Liquidity refers to the degree of readiness of conversion of an asset into cash).
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A
Anonymous

Dec 05, 2024

False.Liquidity does not refer to the degree of readiness of conversion of an asset into common stock. Instead, it refers to the degree of readiness of conversion of an asset into CASH.
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