The liquidity of the market is _____ in a purely domestic capital market. Multiple Choice unlimited limited held in reserves based upon the stock market

Respuesta :

Answer:

The answer is B. Limited

Explanation:

A market is liquid if market participants can either sell or buy securities (assets, bonds etc.) easily with low transaction costs or without significantly reducing its price.

A purely domestic capital market is not as liquid as the one that also involves foreigners because it is purely domestic and market participants wont be that much compared to if market participants also involve foreigners.

Number of market participants is a key to liquidity. The higher the number, the more liquid a market is.