An automobile is an asset, but it is not liquid because: Answer a. The automobile may not be in good repair b. The owner may still be making payments on the loan c. The automobile cannot be sold without a loss in value d. The transactions costs for the used automobile market are high

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter12: Money And Banking
Section: Chapter Questions
Problem 10E
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Question

An automobile is an asset, but it is not liquid because:

Answer

a. The automobile may not be in good repair

b. The owner may still be making payments on the loan

c. The automobile cannot be sold without a loss in value

d. The transactions costs for the used automobile market are high

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