Meaning & use
liquidity
The ease with which an asset can be converted into cash without significantly affecting its price.
See it in a sentence
The company kept enough liquidity on hand to cover payroll during the slow season.
Investors worried about the fund's liquidity after several large withdrawals in one week.
A note on using this word
Liquidity refers to assets, not overall wealth; a company can be profitable yet have poor liquidity if its assets are hard to sell quickly.
Words with a similar meaning
cash reserves
Choose a synonym to suit the sentence. Meanings can overlap without being identical.
Make it your own
Write a sentence using “liquidity”, then compare your use with the examples above.
Your draft stays on this page and is not sent anywhere.