Which of the following is NOT a correct description of the four dimensions of liquidity:

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The question asks which statement does NOT correctly describe one of the four liquidity dimensions.
Option a: Resiliency is described as how quickly prices revert to former levels after reacting to large order flow imbalances caused by uninformed traders. This aligns with the standard definition of resiliency in liquidity, which captures the speed of price recovery after a liquidity shock.
Option b: Width is defined as the cost of trading a given size, and for small trades it is often identified with the bid-ask spread. This matches the conventional understanding of width as the price differential traders face to complete a trade, especially for smaller orders.
Option c: Immediacy is stated as how early stock markets open for daily transactions. This is incorrect because immediacy in liquidity refers to how quickly a trade can be executed or how readily orders are filled, not the opening time of markets. The opening time is about market hours, not a liquidity dimension.
Option d: Depth is described as the size of a trade that can be arranged at a given cost, with depth being the amount available at a given price level. This is consistent with the notion of depth, which measures the volume available at a particular price and the capacity to execute larger trades without moving prices.
Therefore, the statement that does NOT describe a correct liquidity dimension is option c, since immediacy relates to execution speed rather than market opening times.

Which of the following is NOT a correct description of the four dimensions of liquidity:

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