Q676
Largest number of buyers and sellers, greater the
A.
liquidity
AnswerB.
speculation
C.
hedging
D.
forward rate
Answer: Option A
Solution
Answer: Option A
Solution:
Largest number of buyers and sellers, greater the liquidity. Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value. In other words: the ease of converting it to cash.