Answer: b. False
Liquidity refers to the degree of readiness of conversion of an asset into common stock.
Explanation:
Liquidity refers to the ability to easily convert an asset into cash. It is the degree to which an asset can be quickly purchased or sold in the market at a price which reflects its intrinsic value. Cash is the most liquid asset. Some assets such as stocks and bonds are very liquid because they can be converted to cash within days.
