Liquidity means------------------------------------------------------------.
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Answer:
Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value.
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Liquidity means the amount of cash that can be readily spent by an individual or a firm.
Explanation:
In other words, assets that have high market value and be readily be made to cash.
Liquid assets are highly essential to meet out the emergency fund in the unexpected circumstances of an organization.
In the case of insufficient liquidity, the firm has to bring the fixed assets for investment. In the worst case, it may can even bankruptcy.
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