Question

As it become easier to sell an asset in the secondary market relative to alternative assets, holding everything else unchanged, that asset becomes less desirable. Consequently, its demand decreases.

Answer 1

Answer:

False

Explanation:

If it becomes easier to sell an asset in the secondary market, it means that the asset's demand increases, therefore the asset is more desirable. Usually the demand for an asset increases due to two main reasons:

1. the expected return of the asset increases relative to that of an alternative assets
2. the asset's risk lowers relative to that of alternative assets