Liquidity

The fact of being available in the form of money, rather than investments or property, or of being able to be changed into money easily: The group has excellent liquidity. This liquidity problem is severe for small and medium-sized businesses, money, rather than investments or property, or assets that can be changed into money easily: A firm may be unable to pay its suppliers unless it has extra liquidity[Cambridge Dictionary]. The ability to quickly convert an asset into cash without significant loss of its value (with minimal costs). Money (coins and paper cash) is the most liquid asset. Demand bank deposits are highly liquid assets because they can be converted into cash at the customer's request. The types of money included in the monetary aggregate M1 are the most liquid assets in the economy. Also, liquidity is the Solvency of the supplier and its ability to ensure timely fulfillment of debt obligations; The market can sell securities without significant price changes. Absolute liquidity is the ability of cash and demand deposits to directly perform the role of a generally recognized means of payment and other functions of money. Liquidity diversification — diversification of investments by terms to ensure liquidity. The "depth" of the market is such a scale of business activity in the market that it does not cause a change in the price level. The depth of the market reflects the liquidity of the market and the ability of this market to expand the purchase and sale of goods without a significant change in their prices. The term "liquidity" is also used for banks, enterprises (firms), the securities market, etc. [Liquidity].

Sources:

Liquidity.(2023)Cambridge dictionary. Retrieved from: https://dictionary.cambridge.org/dictionary/english/liquidity