liquid asset

Also found in: Dictionary, Thesaurus, Encyclopedia.

Related to liquid asset: Net worth

Liquid asset

Asset that is easily and cheaply turned into cash-notably, cash itself and short-term securities.

Liquidity

Easy convertibility into cash. A liquid asset or security can be easily bought or sold with little or no impact on price. Most methods of counting money supply include some highly liquid investments such as certificates of deposit. Liquid assets and investments are highly desirable as they may be sold to allow an investor to enter other investments as they arise. On exchanges, liquid investments usually have low bid-ask spreads. See also: Illiquid, Liquidity preference hypothesis.

Liquid asset.

Liquid assets are accounts or securities that can be easily converted to cash at little or no loss of value.

These include cash, money in bank accounts, money market mutual funds, and US Treasury bills.

Actively traded stocks, bonds, and mutual funds are liquid in the sense that they are easy to sell, but the price is not guaranteed and could be less than the amount you paid to buy the asset.

In contrast, selling fixed assets, such as real estate, usually requires time and negotiation.

liquid asset

a monetary ASSET (such as CURRENCY) that can be used directly as a means of payment. See MONEY, MONEY-SUPPLY definitions, LIQUIDITY PREFERENCE.

liquid asset

An asset that is cash or can be converted to cash on very short notice.

References in periodicals archive ?

With a 9.5% compound annual growth rate (CAGR) for affluent investors' liquid assets expected over the forecast period, China remains the envy of many of its Asian peers.

Wealth Landscape in China: Market Sizing & Opportunities to 2022

The first part of this section presents the median values of the baseline and the stress values of the liquid asset ratio and the worst-case scenario (bank run) for each bank in the sample.

Factors affecting sensitivity of Commercial Banks to bank run in the Visegrad Countries

If the liquid asset [S.sub.n] re-added to the investment activities at the beginning of each stage is uncertain, investors need to set the amount of the new invested liquid asset according to the fund condition of the time.

A dynamic programming model of the optimal investment based on liquid asset, uncertainty and asset portfolio selection

Note that if investors were not risk averse and had constant marginal utility of consumption, they would not prefer this particular liquid asset. That is, if U(c) = c, then the expected utility of holding any asset is equal to its expected payoff given the policy of liquidating when of type 1.

Banks and liquidity creation: a simple exposition of the Diamond-Dybvig model

However, the t-statistic for the coefficient EXROWN (2.04) suggests that, as expected, the impact of exchange rate fluctuations on liquid asset holdings depends upon whether a firm is Brazilian or foreign-owned.

Cash flow instability and the demand for liquid assets by firms in Brazilian manufacturing

The current liquid assets and quasi-liquid assets that include $3.3 trillion in sovereign wealth funds and $40.4 trillion in proven oil and gas reserves will equate to $841 million in assets per capita of the GCC economies.

$43.7t in assets to keep GCC resilient to global slowdown

The total liquid assets in banks at the end of Q4 2018 stood at Dh407.6 billion, an increase of Dh35.4 billion compared to Q3 2018, an increase of 9.5 per cent in Q4 of 2018.

UAE banking sector remained positive during the fourth quarter of 2018

'It relates a bank/QB's eligible liquid assets to its qualifying liabilities.'

BSP gives banks leeway to comply with new rules on cash sufficiency

On the other hand, the method for computing the MLR now converges with the LCR framework as interbank placements are now counted as eligible liquid assets. Moreover, it added the amount of qualifying liabilities has been adjusted through the application of conversion factors to retail current and regular savings deposits worth P500,000 and below and certain liability accounts.

BSP gives big banks more time to build up liquidity

'Commercial banks neither have the expertise to assess repayment capacity of small businesses (not backed by liquid assets) nor have they tried to develop any such model.

Let microfinance banks do SME financing

Qatar's other liquid assets in foreign currency, a major component of foreign reserves, however declined to QR69.10 billion in November from QR82.8 billion in the same month of the previous year.

Qatar's Nov foreign reserves jump 31% to $48.41 bn: QCB

According to the bulletin, liquid assets to total assets and liquid assets to total deposits ratios of the industry stood at 22.8% and 27.9%, respectively.