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3 years ago

What is meant by liquidity?

Business

1 answer:

BartSMP [9]3 years ago

3 0

Answer:

Liquidity is the term which is stated as the degree to which the asset or the security of the company which can be quickly sold or bought in the market at the price which states its intrinsic value.

In general term, it is defined as ease of converting the asset or security into cash.

Explanation:

The most liquid asset is cash as it is universally accepted and considered to be the standard for liquidity because it is quickly and easily be convertible into other assets., while the other tangible assets like collectibles, real estate are all relatively illiquid.

Liquidity is of different types:

1. Market liquidity - Which refers to the extent of market like stock market, real estate market.

2. Accounting liquidity - It evaluates the ease with which the company or individual could meet or fulfill the financial obligations with the liquid assets which are available to them.

The accounting liquidity is measured with following ratios - Cash ratio, Quick ratio and Current ratio.

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goblinko [34]

Answer:

The correct answer is option c.

Explanation:

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All these characteristics show that the economy is going through economic depression.

Depression refers to the situation in which an economy suffers a downturn in economic activities. It involves decrease in output level, price and employment rate.

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3 years ago

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aliya0001 [1]

A tradeoff is a balance achieved between two desirable but incompatible feature. So the reasonable answer would be B

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3 years ago

Supply-side policies have proven that smaller government makes the economy more efficient. Select one: True False

scoundrel [369]

Answer:

The given statement is "False".

Explanation:

Supply-side policies include those strategies that increase the economic ability of an enterprise as well as the ability to manufacture. To increase supply-side efficiency, there are also many specific steps that somehow an authority may undertake.
Any strategy that increases the economic capacity of a nation's infrastructure and therefore its ability to transfer should be under the supply-side legal framework.

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3 years ago

You decide to take $600 out of your piggy bank at home and place it in the bank. If the reserve requirement is 2 percent, how mu

Ostrovityanka [42]

To determine the increase in the amount of money in the economy brought about the $600 taken out of the piggy bank, we multiply $600 by the decimal equivalent of the percentage given. That is,
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3 years ago

Routine, day-to-day business processes and interaction with customers occur at the ________ level of a firm.

Setler79 [48]

Answer:

Operational level

Explanation:

The operational level is the bottom level in an organization and it is at this level that <u>daily business operations and activities, that connect the organization directly with customers, take place.</u>

Examples of such activities include; manufacturing, marketing and selling.

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3 years ago