Economics · Investment
What does 'liquidity' mean in terms of investment?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The level of income generated from the investment
- 2The risk of losing money when selling the investment.
- 3The ability to sell or convert the investment into cash quickly without incurring high transaction costs.✓
- 4The ability to generate high returns in a short period.
Correct answer
The ability to sell or convert the investment into cash quickly without incurring high transaction costs.
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