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What is the ability to be used as, or directly converted to, cash called?

the money supply


liquidity


interest


default

1 Answer

1 vote

Answer:

The ability to be used as, or directly converted to, of cash is called liquidity.

Step-by-step explanation:

In accounting, liquidity is the availability of means of payment in very short-term cash, or the immediate availability of cash.

In financial terms, the term indicates the aptitude of an investment to be transformed into money quickly and possibly without losses.

In terms of capital, the term also defines the situation characterized by a considerable availability of cash and/or other means of payment that can be easily and quickly converted into cash.

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