Question

Which statement is true about liquidity?
Liquidity means your money is easily accessible
O Liquidity is the process of diversifying your portfolio
Liquidity is when you invest in a tax-benefit fund like a 401K or IRA
O Liquidity means your investment is guaranteed to not lose money

Answer 1

Final answer:

Liquidity is about how quickly an asset can be turned into cash without losing its value.

Explanation:

Liquidity refers to the ease and speed at which an asset can be converted into cash without significantly affecting its value. Cash is the most liquid asset, while other assets like real estate are less liquid as converting them to cash can be time-consuming and costly.

Learn more about Liquidity here:

https://brainly.com/question/17862041