n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following best defines 'Liquidity' in financial terms?

Practice question from NISM XXI A for PMS - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. The ability to convert assets into cash quickly and without loss of value

    Correct answer

  2. B

    The total value of all assets owned

  3. C

    The interest rate earned on savings accounts

  4. D

    The risk associated with inflation

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

Test yourself for real

Take a full NISM Series XXI-A mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.