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Answer: A liquid asset has a ready market, a reasonably stable price and is reversible.
The question asks which statement is FALSE about liquidity management strategies. The given statement A describes characteristics of a liquid asset but does not actually discuss or compare the three liquidity management strategies mentioned (asset liquidity management, borrowed liquidity, or balanced liquidity management). Therefore, this statement is the false one as it doesn't relate to the strategies being discussed. A complete question would need additional options (B, C, D, etc.) that actually describe the three strategies to properly identify which statement about the strategies is false.
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Q-30. Experienced liquidity managers tend to employ one of three strategies: asset liquidity management (aka, asset conversion), borrowed liquidity (aka, purchased liquidity or liability management), or balanced liquidity management. About these strategies, each of the following statements is true EXCEPT which is false?
A
A liquid asset has a ready market, a reasonably stable price and is reversible.
B
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