Assets that can be readily converted into cash are termed

• A. Liquid
• B. Marketable
• C. Liquid assets
• D. Tangible

Answer: (C)

Liquidity is the ability to convert assets into cash quickly with little or no loss in value. The term used for assets that have this quality is liquid assets. This label captures both the speed of conversion and the minimal risk of devaluing the asset when turning it into cash, which is why it’s the standard designation. Examples include cash itself, checking and savings accounts, money market funds, and short-term government securities. Describing an asset as merely “liquid” speaks to the quality rather than naming the asset class. “Marketable” suggests it can be sold in a market but doesn’t always guarantee immediate conversion or no loss. “Tangible” refers to physical form, not how quickly or easily it can be turned into cash. So the best fit is liquid assets.