English · Work & Business

liquidity

/lɪˈkwɪd.ɪ.ti/

[/lɪˈkwɪd.ɪ.ti/]

available cash

Advancednoun

Definition

The ease with which assets can be converted into cash, or the amount of cash available.

Example

The firm kept high liquidity so it could cover sudden expenses without borrowing.

The firm kept high liquidity so it could cover sudden expenses without borrowing.

Etymology

From Latin 'liquidus' (fluid); the financial sense developed in modern economics.

How & Where It’s Used

Used in finance, banking, and economics.

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