Question

What does it mean that stocks and bonds are relatively liquid?

A. They are easier to buy and sell than other forms of investment.
B. They tend to go up and down in value
C. The amount of income they can bring changes frequently
D. There are more of them to choose from than other forms of investment

Answer 1

A) they are easier to buy and sell

Answer 2

Answer: A. They are easier to buy and sell than other forms of investments.

Step-by-step explanation: We are all familiar with stocks and bonds. They are similar, yet different to some extent. They are two different ways to raise money. In simple language, we can say that stocks are shares of Individual companies whereas bonds are debts. Also, we can easily liquify both of them, i.e., we can easily transform them into cash within a very short span of time, and hence, it is really easily to buy and sell them compared to other modes of investments.

Thus, the correct option is A.