Ask Question
BusinessBusiness
30 June, 14:47

An illiquid asset cannot serve as a: A) medium of exchange. B) unit of account. C) store of value. D) store of wealth.

+4
Answers (1)
  1. 30 June, 16:29
    0
    A) medium of exchange.

    Explanation:

    Illiquid assets are securities or assets that are difficult to sell due to shortages of interested buyers. Lack of an established market for some assets makes them illiquid. Illiquid assets do not convert to cash easily. They risk losing a sizable percentage of their value if converted to cash.

    Illiquid assets cannot be used as a medium of exchange because exchanging them with other goods and services will be difficult. Illiquid assets are not frequently traded, which makes it hard to determine their market value. Without a definite market value, it will be a challenge to use illiquid assets as a medium of exchange.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “An illiquid asset cannot serve as a: A) medium of exchange. B) unit of account. C) store of value. D) store of wealth. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Some individuals decry the decline of the small family farm and its replacement with the huge corporate megafarm. Discuss the possibility that this is a consequence of economies of scale.
Answers (1)
Which type of life insurance policy combines term insurance and investment elements? a. Whole life b. Ordinary life c. Universal life d. Adjustable life
Answers (1)
It is Jan 1st and Great Distributing LLC has made a strategic decision on an annual contact to purchase a fixed monthly amount for the remained of the year because of a good price from its suppliers. The fixed monthly amount will be based on the EOQ.
Answers (1)
Which of the following things could make a business idea a bad opportunity? A. Differentiation B. Low competition C. Low customer demand D. Low startup costs
Answers (1)
A stock has a beta of 0.9 and an expected return of 9 percent. A risk-free asset currently earns 4 percent. a. What is the expected return on a portfolio that is equally invested in the two assets?
Answers (1)
New Questions in Business
Which of the following is the best example of a perfectly competitive industry? a. wheat productionb. electricity productionc. steel productiond. airplane production
Answers (1)
Assume that we use a perpetual inventory system and that five identical units are purchased separately at the following four dates and costs: April 5 at $10, April 10 at $12, April 15 at $14, and April 20 at $16 April 20 $17.
Answers (1)
In Section 7, the word warranty is best defined as A) a contract between USATestPrep and its Customers. B) a guarantee of any part of the site and its contents. C) a pledge of Customer service if anything goes wrong with the site.
Answers (2)
A (n) is the issuer's written promise to pay an amount equaling the par value. The par value is paid at a specified future date. Most often, the issuer is required to make semiannual interest payments.
Answers (1)
The primary goal of the Consumer Financial Protection Bureau is: A To monitor your credit report and ensure your identity and other sensitive data has not been compromised. B To protect against abusive or deceptive debt collection purposes.
Answers (1)
Home » Business » An illiquid asset cannot serve as a: A) medium of exchange. B) unit of account. C) store of value. D) store of wealth.
Sign Up Forgot Password?