Answer: Option D
Answer: (d)
Liquid Asset is an asset that can be converted into cash quickly and with minimal impact on the price received. In a liquid market, assets can be easily converted without considerable price fluctuation, and with a minimal decline in worth.
A liquid market is a type of market that possesses a high level of stability, and low spreads between asking and selling prices. Securities issued by the Government are considered risk-free, and as such, their yields are often used as the benchmarks for fixed-income securities with the same maturities.
The government securities market constitutes a key segment of the financial market, heavily traded offering virtual credit risk-free highly liquid financial instruments, which market participants are more willing to transact and take positions.