liquidity

CEFRC1

/lɪkˈwɪdəti/

noun

Türkçe translations

Translating…

In plain English

  1. 01

    noun

    How easily an asset can be changed into cash.

  2. 02

    noun

    Extra detail

    An asset's property of being able to be sold without affecting its value; the degree to which it can be easily converted into cash.

Examples

  • The market doesn't have a lot of liquidity.

  • It's a high liquidity market.

At a glance

Sits at C1 on the CEFR scale

Senses
5
Parts of speech
1
Citations
1

Deep Dive

noun

Extra meanings

  1. The degree of which something is in high supply and demand, making it easily convertible to cash.

  2. The state or property of being liquid.

  3. Availability of cash over short term: ability to service short-term debt.

More examples

In context

  • Some stocks are traded so rarely that they lack liquidity.

  • This is often phrased in terms of whether they are facing liquidity or solvency problems; but I think it’s better phrased in terms of the possibility of self-fulfilling crises, a la Obstfeld.

Antonyms

Quick test

Two questions on this entry. Nothing is scored.

Question 1 · Quick check

The bank always maintained high blank to meet sudden customer withdrawal demands.

Practise this properly in the app, where the word comes back before you forget it.

Nearby

Origin

noun

From liquid + -ity, from Latin liquiditas. In their financial and economic senses, this and various associated terms all involve portraying assets figuratively as if they were liquids and solids, dissolving the solids with solvents, freezing and thawing, and so on.