Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: *

Market liquidity In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the ...

, the ease with which an asset can be sold *

Accounting liquidity In accounting, liquidity (or accounting liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due. It is usually expressed as a ratio or a percentage of current liabilities. Liquidity is the ability to pay ...

, the ability to meet cash obligations when due *

Funding liquidity Funding liquidity is the availability of credit to finance the purchase of financial assets. The International Monetary Fund (IMF) defines funding liquidity as "the ability of a solvent institution to make agreed-upon payments in a timely fashion". ...

, the availability of credit to finance the purchase of financial asset *

Liquid capital Liquid capital or fluid capital is the part of a firm's assets that it holds as money. It includes cash balances, bank deposits, and money market investments. See also * Circulating capital * High quality liquid assets * Fixed asset * Liquidity ...

, the amount of money that a firm holds *

Liquidity risk Liquidity risk is a financial risk that for a certain period of time a given financial asset, security or commodity cannot be traded quickly enough in the market without impacting the market price. Types Market liquidity – An asset cannot be ...

, the risk that an asset will have impaired market liquidity