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The term that is closely related to the concept of liquidity is:

A. Financial position.
B. Interperiod equity.
C. Financial condition.
D. Economic condition.

User Thilak
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Final answer:

The term 'Financial position' is most closely related to liquidity, which indicates how readily financial assets can be used for purchases.

Step-by-step explanation:

The term most closely related to the concept of liquidity is A. Financial position. Liquidity is a key component of a company's financial position, as it refers to how quickly and easily a financial asset can be transformed into cash or used to pay for goods and services. Cash, being very liquid, can be used immediately to purchase something, whereas assets in a savings account are less liquid due to the extra steps required to access them, such as withdrawing the money at a bank or ATM.

User Jatinder Pal
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