Question

What is the measure of the ease of converting an asset into its full cash value?

A.) volatility
B.) liquidity
C.) nominal rate
D.) rate of return

Answer 1

The measure of the ease of converting an asset into its full cash value is defined as B. liquidity. A liquid market allows assets to be bought and sold at stable prices. The most liquid asset is cash. While real estate, arts and other collectibles are all relatively illiquid.

Answer 2

The answer is letter B.) liquidity

Liquidity refers to the available liquid assets to a company. It also measures how easy it is to convert an asset to its full cash value.

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