What does it mean that stocks and bonds are relatively liquid? a. They are easier to buy and sell than other forms of investment. b. They tend to go up and down in value. c. The amount of income they can bring changes frequently. d. There are more of them to choose from than other forms of investment.

The correct answer is letter "A": They are easier to buy and sell than other forms of investment.

Explanation:

The liquidity of an asset reflects the ease at which it can be transformed into cash from an investment. Liquid assets are easily convertible to cash and see little or no difference in the value of the assets after converted. Illiquid assets are more difficult to convert, which can result in a substantial decrease in their value after converted.

When it comes to securities like stocks or bonds, liquidity refers to the ability the asset has to be bought and sold quickly. It implies the securities have enough buyers and sellers to enter and exit a position.