A. liquidity
B. speculation
C. hedging
D. forward rate
✅ The correct answer is option A.
Largest number of buyers and sellers, greater the liquidity. Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value. In other words: the ease of converting it to cash.
Largest number of buyers and sellers, greater the liquidity. Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value. In other words: the ease of converting it to cash.