What is liquidity in economics
Liquidity refers to how quickly a financial assets can be used to buy a good or service. For example cash is very liquid because can easily be used to buy anything whereas money on account is less liquid since one may have to withdraw before he can use it to purchase.
Or
Liquidity refers to the ease with which an asset can be converted into cash without significant loss of value.
CATEGORIES Economics
TAGS Dr. Bbosa Science
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