Liquidity

Liquidity refers to the ability of an asset or investment to be easily converted into cash or be used to make payments. High liquidity means that an asset can be quickly bought or sold without significantly affecting its price. Liquid assets usually come with a short maturity tenure and a low risk profile and include:

  • Cash
  • Savings Accounts
  • Liquid Funds
  • Treasury Bills 
  • Certificates of Deposit
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