The ease with which the investment product can be converted to cash or cash equivalents is known as
Answers
The answer to the question is Liquidity
The cash is considered as the most important standard for the liquidity, because cash can be converted into any form.
Liquidity: It is the ability by companies to meet the current liabilities.
Money and cash are the most important assets of the liquidity. The liquidity has no wait for a suitable buyer of the cash. The most important thing in the liquidity is that, it is a about the How fast the market or the resale will be occur.
Extra information:-
- Liquidity is a very important term for Banks and Stock markets
- Gold is also a substance with very high liquidity
- There is no trade-off between speed and value because of liquidity
it is knowns as liquidity
because liquidity means how easily the asset can be converted into cash and cash equivalents in the market.
u can understand this from the following example
if u have a cheque u can encash it I'm the market with in a short period.
but if u have a house and if u want to encash it then it takes more time then compared to the above example.
by this I think u might have understood what is liquidity and which has more liquidity.
comment your answer for which asset has more liquidity in the comments section.
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