Stock Market Liquidity Test

Question 1

Describe liquidity.

Accepted Answer

Simplicity of investing and selling

Answer

An evaluation of the return on investment

Answer

Establishes the worth of an investment

Question 2

Which of these asset classes has the least liquidity on average?

Accepted Answer

Property

Answer

Gold

Answer

Bitcoin

Answer

Infosys shares

Question 3

What does it mean when a stock's liquidity suddenly increases dramatically?

Accepted Answer

There is something that has traders and investors interested.

Answer

It indicates that many sellers desire to sell their shares.

Answer

It indicates that many consumers desire to purchase.

Question 4

Who among them should be most worried about a stock's liquidity?

Accepted Answer

Intraday Trader

Answer

Swing trader

Answer

Positional Trader

Answer

Investor

Question 5

Among these, which has the best liquidity?

Accepted Answer

TCS- Cash segment

Answer

TCS-Future (Current Month)

Answer

TCS-Options

Answer

TCS-Future (Next Month)

Question 6

The liquidity of a deep out-of-the-money (OTM) option will be higher than that of an ATM option.

Accepted Answer

False

Answer

True

Answer

Sometimes

Question 7

Which of these indices' futures has the lowest liquidity?

Accepted Answer

Nifty IT

Answer

Bank Nifty

Answer

Nifty PSU Banks

Answer

Nifty