Which of the following is a characteristic of liquid assets?

Liquid assets are defined by their ability to be quickly and easily converted into cash without a significant loss of value. This characteristic makes them essential for individuals and businesses that need to maintain liquidity for day-to-day operations or emergencies. Examples of liquid assets include cash itself, checking and savings accounts, stocks, and bonds which can be sold or withdrawn swiftly.

In contrast, real estate holdings are considered illiquid because they usually require time and often substantial effort to sell in the market. Long-term investments, such as retirement accounts or bonds held to maturity, do not provide immediate cash access, which further distinguishes them from liquid assets. Appraisals for value are also not a characteristic of liquid assets; rather, they are often needed for assets that may not have a readily available market price, such as real estate or specialized equipment. Thus, the distinct quality of liquid assets being easily convertible to cash secures its position as the correct answer.