liquidity in a sentence
n.
📚 Grade Level: Grade 9, Grade 10, Grade 11, Grade 12
Definition
Liquidity refers to the availability of liquid assets to a company or financial institution, enabling it to meet short-term obligations and navigate market fluctuations.
Sample Sentences
- Liquidity is essential for a company's ability to meet its short-term obligations.
- The bank increased its liquidity position to better navigate potential market fluctuations.
- During times of economic uncertainty, investors often seek assets with high liquidity.
- The sudden drop in stock prices raised concerns about the market's overall liquidity.
- Effective cash flow management ensures that a business maintains adequate liquidity.