Question

Do you agree with the idea that the contemporary world is characterized by high liquidity? why or why not?

Answer 1

Answer:

Yes, in the capital markets sense.

Liquidity means buying and selling tradable securities easily, securely and with relatively narrow spreads. Example right now for Apple:Best Bid / Ask $ 207 / $ 207.03 Example right now for Apple:Best Bid / Ask $ 207 / $ 207.03That means even if you bought Apple and immediately sold it, you’d lose just 3¢.

Compare that to real estate where brokers might get 5% of price, plus legal, accounting, registration and all the other expenses. R/E is “illiquid” compared to stock.But remember - that’s voluntary bids and asks. In a panic, many trades won’t answer the phone. Liquidity has benefited from technology and advanced communications. That also lets rumors and panics spread quickly !

Answer 2

Explanation:

Yes, I agree to the statement given in question. The world in which we are living is an economic cycle which can be characterized by liquidity. In this world, we can relate almost all the thing with money, like all sort of manufacturing, marketing, purchasing is eventually counted in terms of what has been gained or lost in monetary terms