n NISM Certifications
XXI NISM Series XXI-A
Medium

'Liquidity' in financial markets refers to:

Practice question from NISM XXI A for PMS - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. The ease of converting assets into cash without significant loss

    Correct answer

  2. B

    The total value of assets held by a company

  3. C

    The company's ability to generate profits

  4. D

    The level of debt in a company

Why this is the answer

Liquidity ensures quick sale of assets at or near market value.

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