The liquidity of an asset indicates: a. its buying power. b. the ...

[madam-professor]

The liquidity of an asset indicates:
 a. its buying power.
 b. the ease with which it can be converted into cash without a significant loss of value.
  c. the ease with which it can be converted into another asset.
 d. how likely people are to trade it internationally.
 e. its intrinsic value.

Question 2

The market interest rate is important to the investment decision of firms:
 a. only when funds are borrowed from financial intermediaries.
 b. only when firms have the money to invest in capital.
 c. regardless of whether funds must be borrowed or firms have the funds on hand.
  d. only when firms have funds on hand and are ready to lend them.
 e. only when firms purchase new equipment rather than a new building.

[sultana.d]

Answer to Question 1

b

Answer to Question 2

c

[madam-professor]

Excellent

[olderstudent]

TYSM