This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is liquidity? Why is money the most liquid of all assets? What is the cost of this liquidity? ... (Read 241 times)

SO00

  • Hero Member
  • *****
  • Posts: 568
on: Jun 30, 2018
What is liquidity? Why is money the most liquid of all assets? What is the cost of this liquidity?
 
  What will be an ideal response?

Question 2

Refer to the table above. If imports falls to 45,000 in the next year, ________, all other variables remaining unchanged.
 
  A) gross domestic product will fall by 5,000 B) gross domestic product will fall by  10,000
  C) gross domestic product will increase by 5,000 D) gross domestic product will increase by  10,000


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

whitcassie

  • Sr. Member
  • ****
  • Posts: 298
Reply #1 on: Jun 30, 2018
Answer to Question 1

Liquidity is the degree to which an asset can be acquired or disposed of without much danger of any loss in nominal value and with small transaction costs. Money is the most widely and readily accepted asset that can be exchanged for other goods and services, so it is the most liquid asset. The cost of this liquidity is the interest yield given up that was available by holding another asset.

Answer to Question 2

C


SO00

  • Hero Member
  • *****
  • Posts: 568
Reply #2 on: Jun 30, 2018
Correct answers!


whitcassie

  • Sr. Member
  • ****
  • Posts: 298
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Microscopic photo taken by Opportunity showing a gray hematite concretion, indicative of the past pr Microscopic photo taken by Opportunity showing a gray hematite concretion, indicative of the past pr
Vapour-liquid equilibrium acetone + water Vapour-liquid equilibrium acetone + water
Typical Startup Cost Categories Typical Startup Cost Categories
The structure of liquid water The structure of liquid water
Infant formula is available in several forms and varies in cost and ingredients Infant formula is available in several forms and varies in cost and ingredients
Grade 1 learn Canadian money Grade 1 learn Canadian money
Video: How do the different types of chromatography work? (No Audio)

For a complete list of videos, visit our video library