What term describes the relative difficulty of converting an asset into cash without losing value?

The term that describes the relative difficulty of converting an asset into cash without losing value is liquidity. Liquidity refers to how easily an asset can be bought or sold in the market without significantly affecting its price. Highly liquid assets, like cash or stocks of large companies, can be quickly converted into cash with little to no loss in value. In contrast, assets that are not easily sold, such as real estate or collectibles, may require more time to find a buyer and might have a greater risk of depreciation if a quick sale is necessary.

Asset valuation pertains to determining how much an asset is worth, but it does not specifically address the ease of converting that asset into cash. Marketability relates to how desirable an asset is in the marketplace and can influence liquidity but focuses more on demand rather than the speed of conversion to cash. Solvency is a measure of an entity's ability to meet its long-term financial obligations and is not directly related to the cash conversion of individual assets. Hence, liquidity is the correct term to describe the ease of converting an asset into cash without loss of value.