When an asset is described as being highly liquid, which one of the following characteristics does it possess?
A) It earns a high rate of interest, so its purchasing power is maintained when prices rise.
B) It is easily and readily converted into money without any loss in purchasing power.
C) The face value of the asset is somewhat less than its value when converted into currency.
D) The asset holds its value over time.
B
You might also like to view...
A single-price monopolist
A) sets its price where its demand is inelastic. B) can always increase its profits by increasing its price. C) has its marginal revenue less than its price. D) is guaranteed an economic profit.
___ resources are those for which the quantity desired exceeds the quantity available
a. Tangible b. Scarce c. Physical d. Insatiable
There would be no reason for students to study the concept of opportunity costs if:
A.) The market mechanism functioned to allocate resources. B.) The government allocated resources. C.) The production possibilities curve bowed outward. D.) Resources were no longer scarce.
If the demand for a product decreases, we would expect that price will initially ________, and eventually ________.
A. rise; fall B. rise; continue to rise C. fall; rise D. fall; continue to fall