Identify the basis on which you measure the liquidity of an asset
a. Its value.
b. Its future earning potential.
c. Its convertibility into cash.
d. Its ability to act as a perfect store of value.
c
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Scarcity can best be defined as a situation in which
A) there are no buyers willing to purchase what sellers have produced. B) there are not enough goods to satisfy all of the buyers' demand. C) there is more than enough money to satisfy consumers' wants. D) the resources we use to produce goods and services are limited.
The quantity of money demanded will decrease if the
A) nominal interest rate decreases. B) price level rises. C) real interest rate decreases. D) inflation rate decreases. E) nominal interest rate increases.
How does money function as a unit of account? a. Money has intrinsic worth as a commodity
b. Money is convertible into commodities that have intrinsic worth. c. The prices of all goods and services are measured in terms of money. d. Things that function as money can do so because people know there is a standard of value that ultimately backs the money even if it is only faith. e. Bank accounts make it easy for people to store their wealth.
Unrestricted entry and exit into the market is found in
A) perfect competition and monopolistic competition. B) perfect competition and oligopoly. C) monopolistic competition and oligopoly. D) perfect competition, monopolistic competition and oligopoly.