Asset that is easily and cheaply turned into cash-notably, cash itself and short-term securities are known as______________?
Correct answer: A. Liquid asset
- A. Liquid asset
- B. Solid asset
- C. Hard asset
- D. None of these
Explanation
A liquid asset can be converted into cash quickly and with little loss in value, making cash and short-term securities typical examples. Liquidity refers to ease of conversion, not whether an asset is physically hard or solid.
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