Answer :
See the complete question below.
Ronald’s car just died, and he needs to buy a new one very soon. He has investments, but it will take a while for him to get the cash from these investments. Ronald is having a _____ problem.
a. liquidity
b. penalty
c. dividend
d. diversification
Answer:
The answer is option (A) Liquidity.
Explanation:
A liquidity problem is said to occur when there isn't just enough cash or easily-convertible-to-cash assets at hand to meet pressing needs.
This liquidity problem usually happens when an individual or business expects to have cash soon from conducting business or reaping profits from investments like Ronald.
Answer:
Liquidity problem
Explanation:
Liquidity problem arises as a result of the inability of a business investment to have liquid assets that can yield cash on a short term basis, in order to meet short-term needs. In the case of Ronald, his investment doesn’t yield quick cash, or can say his investment is not quite liquid since it would take some time to yield cash to fulfill the short-term obligation of getting a new car. Thus, we can say Ronald is faced with liquidity problem.