Liquidity Meaning
/lɪkˈwɪdəti/Definition, CEFR level C1, pronunciation, examples, and quiz.
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Definition
nounThe state or property of being liquid.
nounThe degree of which something is in high supply and demand, making it easily convertible to cash.
Sentence Examples
The market doesn't have a lot of liquidity.
It's a high liquidity market.
CEFR Practice Quiz
The bank always maintained high ____ to meet sudden customer withdrawal demands.
CEFR Practice Quiz (Alternate)
The bank maintained a high level of ____ to ensure that it could meet any sudden demands for cash today.
Word Origin & History
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.
Literary Quotations & Historical Citations
"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."
— 2011 July 8, Paul Krugman, “A Self-Fulfilling Euro Crisis? (Wonkish)”, in The New York Times:
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CEFR Practice Quiz
The bank always maintained high ____ to meet sudden customer withdrawal demands.
CEFR Practice Quiz (Alternate)
The bank maintained a high level of ____ to ensure that it could meet any sudden demands for cash today.