liquidity
/li'kwiditi/
Học thuậtThân thiện
Definition
- Noun:
- The state of being liquid; the quality of being fluid or flowing easily: This refers to the physical property of a substance that is not solid or gaseous, allowing it to flow and take the shape of its container.
- The availability of liquid assets to a market or company: In finance and economics, this refers to the degree to which an asset or security can be quickly bought or sold in the market without affecting its price, or to a company's ability to meet its short-term debt obligations with cash or assets that can be readily converted to cash.
Usage Examples
Noun (Physical State):
- The liquidity of the melted chocolate made it easy to pour into the molds.
- Scientists measure the liquidity of different polymers at high temperatures.
Noun (Financial/Economic State):
- The central bank injected liquidity into the financial system to stabilize the markets.
- A company with high liquidity can pay its bills on time without having to sell long-term assets.
Advanced Usage
- Market Liquidity: Describes how easily assets can be traded in a market (e.g., stocks, bonds) due to high trading volume.
- Blue-chip stocks typically have high market liquidity.
- Liquidity Crisis: A situation where a company, bank, or market lacks sufficient liquidity to meet demands.
- The bank faced a liquidity crisis when too many depositors tried to withdraw their money at once.
Variants and Related Words
- Liquid (adj/n): As an adjective, describes the state of matter (e.g., ). As a noun, a substance in this state.
- Liquidate (v): To convert assets into cash; to wind up the affairs of a business by selling its assets.
- Liquidity Ratio (n): A financial metric used to determine a company's ability to pay off its short-term debts.
Synonyms
- Fluidity: The physical quality of flowing easily.
- Cash flow: The net amount of cash being transferred into and out of a business (related to financial liquidity).
- Marketability: The ease with which an asset can be sold.
Antonyms
- Illiquidity: The state of not being easily convertible to cash.
- Solidity: The physical quality of being firm and stable.
- Insolvency: The inability to pay debts when they are due.
Related Phrases
- Liquidity Trap: An economic situation where interest rates are low and savings rates are high, rendering monetary policy ineffective.
- Economists worry the country might be entering a liquidity trap.
- Liquidity Provider: An entity, like a large bank, that offers to buy or sell assets to ensure a market remains liquid.
- The exchange relies on designated liquidity providers to facilitate trading.
Noun
- being in cash or easily convertible to cash; debt paying ability
- the property of flowing easily
- adding lead makes the alloy easier to cast because the melting point is reduced and the fluidity is increased
- they believe that fluidity increases as the water gets warmer
- the state in which a substance exhibits a characteristic readiness to flow with little or no tendency to disperse and relatively high incompressibility