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1. The statement "Liquidity refers to the degree of readiness of conversion of an asset into cash." is True.
2. Liquidity is a measure of how quickly an asset can be converted into cash without significantly impacting its price.
3. Assets like cash and stocks are considered highly liquid because they can be quickly converted into cash with minimal price impact.
4. On the other hand, assets like real estate may take more time and effort to convert into cash, making them less liquid.
5. Therefore, the degree of liquidity indicates how easily an asset can be turned into cash, with high liquidity being desirable for many investors and businesses.
If you have any more questions or need further clarification, feel free to ask!
