The author and editors take ultimate responsibility for the content. An asset is considered liquid if it can be bought or sold quickly without affecting its price. An asset that can be sold ...

the liquidity coverage ratio is the amount of liquid assets that financial institutions must have on hand to ensure they can meet their short-term obligations in the event of market turmoil.

All of the categories account for the amount of cash in the economy, but each category has a slightly different definition of cash or liquid assets. M1, also called narrow money, is often ...

It's a concept mainly used in the bond world because markets tend to contain more similar assets, meaning you can better isolate the liquidity factor when comparing two assets. Still, it's also ...