In forced liquidation, assets are sold in the market as soon as possible, which results in higher prices because of the rush sale.Select one:TrueFalse

The statement is False.

In forced liquidation, assets are typically sold quickly to meet immediate financial obligations, such as paying off debts. This urgency often results in a "fire sale," where the seller has to accept a lower price than the asset might otherwise fetch in a regular market transaction. The rationale behind this is that the seller does not have the luxury of waiting for the right buyer or the optimal market conditions and must recuperate cash as quickly as possible. Therefore, forced liquidations usually lead to lower sale prices rather than higher prices, contrary to what the statement suggests. This scenario underscores the principle that the market value of an asset can be significantly affected by the conditions under which it is sold.