Question

What is liquidity in the context of investment parameters?

a.

The ability to convert investment into cash without loss of value

b.

The ease with which an asset can be bought or sold

c.

The measure of return on investment

d.

The amount of risk associated with an investment

Posted under IC38 Life Insurance Agent Exam

Answer: (a).The ability to convert investment into cash without loss of value Explanation:Liquidity, in the context of investment parameters, refers to the ability to convert investments into cash without a loss of value, ensuring that your assets can be readily accessed when needed.

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