Definition of

Liquidity

Liquidity
How quickly an asset can be turned into cash.

In fact cash is the most liquid asset.

A bank account is also very liquid, as you can (usually) get the money straight away.

But your house is NOT a very liquid asset, because it may take some time to sell it, and a rush sale might mean you get far less than you should.
 
Search :: Index :: About :: Contact :: Contribute :: Cite This Page :: Privacy

Copyright © 2014 MathsIsFun.com