liquid asset

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Related to liquid asset: Net worth

Liquid asset

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


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 ?
It can be found in Figure 2 that when there's liquid asset (either inflows or outflows), the efficient frontier of the investors are superior to the efficient frontier in the case of self-financing.
Given that household wealth is not perfectly correlated with income (Wolff, 1990), we paid special attention to parents' assets and used diverse measures of economic resources: income, net worth, liquid assets, and home ownership.
This shifting of funds to other subsidiaries in the face of exchange rate variability would decrease the subsidiary's liquid asset holdings.
The other product is most often another liquid asset account or a bank credit card.
The FPC added that the big four banks could 'reduce their holdings of liquid assets by around Au70bn.
This analysis is especially difficult in the case of liquid assets (e.
As of year-end 2017, government bonds comprised 56 per cent of Saudi banks' domestic liquid assets, up from 27 per cent in 2015.
Ghazanfar Bilour said objective of the One-time Amnesty Scheme should not be to provide a shelter to illegal practices but to bring the isolated liquid assets into main stream of economy.
In quantitative requirements banks are mandated to keep a minimum level of liquid assets to meet sort term liquidity stress.