Which of the following best describes liquid assets?

Liquid assets are best defined as cash or assets that can be rapidly converted to cash with minimal loss of value. This characteristic is crucial for individuals and businesses that need to access funds quickly for expenses or emergencies. Examples of liquid assets include cash in bank accounts, money market accounts, and certain investments like stocks and bonds that can be sold quickly in financial markets.

The other options describe assets that lack liquidity. Assets tied up in real estate tend to require time and effort to sell, and their values can fluctuate, making them less liquid. Investments that take a long time to mature typically involve fixed processes, such as bonds or certificates of deposit, which do not allow for quick conversions to cash. Similarly, property that cannot be easily sold also signifies a lack of liquidity, as it may require extensive marketing or negotiation efforts to turn into cash. Liquid assets stand out because they cater to the immediate availability of cash for transactions or emergencies.