A financial asset is liquid:
A. only if it takes the form of cash.
B. if it is held by the public and earning interest.
C. if it can be carried easily from one place to another.
D. if it can be readily exchanged for another asset or good.
Answer: D
You might also like to view...
The long run is a time period that is
A) five years or longer. B) long enough to change the amount of labor employed. C) long enough to change the size of the firm's plant and all other inputs. D) long enough to change the amount of labor employed but not to change the size of the plant. E) None of the above answers describes the long run.
Suppose your college sharply raises tuition rates next year. Other things constant, what is the least likely to occur?
A) The overall demand for courses at your college will fall. B) Your college bookstore will sell fewer textbooks. C) It will be easier to find parking at your college. D) Fewer students will use your college library.
Suppose the economy has an inverted yield curve. According to the liquidity premium theory, which of the following interpretations could be used to explain this?
A. The term spread has increased. B. Investors are indifferent between bonds with different time horizons. C. Interest rates are expected to rise in the future. D. Investors expect an economic slowdown.
You spend $300 every month to keep your lawn and garden maintained. Your neighbor has told you that she derives $50 a month in enjoyment from being able to look at your beautiful yard. Which of the following is true?
A. If you took into consideration the benefits your neighbor derived, the efficient level of lawn maintenance would be greater than $300 a month. B. You should refuse to spend anything on your yard unless your neighbor pays you $50 a month. C. You are spending too much on your yard, because your neighbor derives only $50 worth of benefits. D. If you took into consideration the benefits your neighbor derived, the efficient level of lawn maintenance would be less than $300 a month.