Vidyalelo
Management · Q679

International Finance and Treasury

Graduate and Post Graduate · Management · question 679

Q679

Simplicity with which bondholders and shareholders can change their investments into cash is known

A.
barter
B.
hedging
C.
arbitrage
D.
liquidity
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Simplicity with which bondholders and shareholders can change their investments into cash is known as 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.