Finance · Liquidity

How is the market liquidity of a specific financial security defined?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The speed at which a company can pay off its long-term debt obligations using cash reserves
2The ratio of a company's current assets to its current liabilities on the balance sheet
3The regulatory limit on the maximum price fluctuation allowed for a security in a single trading session
4The ability of the market to absorb a reasonable volume of trading without causing significant price changes✓

Correct answer

The ability of the market to absorb a reasonable volume of trading without causing significant price changes

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Liquidity?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Finance · Liquidity

The Dandi March, also known as the Salt Satyagraha, was led by which influential leader?

Which act formally granted independence to India, marking the end of British rule?

Who was the key figure in establishing the Indian National Congress?

Related Practice Questions