Ability to trade at net price very quickly is classified as___________?
Correct answer: B. Liquidity
- A. Original trading
- B. Liquidity
- C. Offline trading
- D. Fixed price trading
Explanation
Liquidity is the ability to buy or sell an asset quickly at, or close to, its current market price. An asset that requires a large price concession to sell has low liquidity.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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