Liquidity is all of my assets including land and other assets that are hard to sell

True or False

False

Explanation:

Liquidity describes the ease with which assets can be converted into cash. Cash at hand or money in the bank, is, therefore, the most liquid asset, as it does not need any conversion. The lesser time it takes to convert an asset to cash, the more liquid the asset is.

A piece of land is not easy to convert to cash. It takes months or more to finalize a land transaction. Large physical assets such as buildings, plant and machinery, together with land, are the least liquid assets.

Assets like bonds and stocks are considered liquid as they can be converted into cash within days.