Which of the following is NOT a characteristic of liquid assets?

Liquid assets are defined by their ability to be quickly converted into cash without a significant loss in value. Characteristics of liquid assets include their stability in value, which means they do not fluctuate widely in price, making them reliable for meeting short-term financial obligations. Additionally, liquid assets are commonly used for settling liabilities, as their liquidity allows businesses or individuals to respond promptly to financial commitments.

The correct answer identifies "require long-term investment" as a characteristic that does not fit with liquid assets. These assets are not typically associated with long-term investment horizons. Instead, they are held primarily for immediate use or to meet short-term needs. In contrast, long-term investments are generally tied up for extended periods, focusing on growth or capital gains rather than liquidity. Thus, identifying "require long-term investment" as the answer highlights that liquid assets are meant for immediate access and financial flexibility rather than being tied down for long durations.