rhizoverbBeta
DictionaryliquidityCash availability
noun

liquidity

lih-KWID-uh-tee/lɪˈkwɪdəti/

The capacity to flow readily rather than remain fixed.

The water's liquidity allows it to pour and spread across the surface.

Water flows from a tilted pitcher into a bowl and spreads across the tabletop.
Etymology
liquidLatinfluid, liquid
+ityLatinquality or state

Latin liquidus meant “fluid,” but the financial sense passed through a legal use for debts established or proved. Liquidity now measures how readily an asset can become cash.

In context

BBCollege Asansol96:25
liquidity is what at the time of the need of money your assets can be converted into money cash
Financial Education for Young Citizens- Kona Kona Shiksha CSR Initiatives Kottak Securities

More examples

  • Cooling reduces the liquidity of the melted wax.
  • Adding water increases the paint's liquidity.
  • The liquidity of molten glass allows workers to shape it.

Forms

liquidity

liquid adjective — Able to flow rather than hold shape.

liquefy verb — To make or become a liquid.

Similar words

fluidity
Emphasizes ease of flow; also describes smooth movement or change.
runniness
Usually describes liquids that are thinner than expected or desired.