Overview on the aforementioned topic

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  • Created by: Joshua
  • Created on: 12-05-11 12:54


      à market liquidity is an asset's ability to be sold without causing a significant movement in the price and with minimum loss of value. 

è Money, or cash in hand, is the most liquid asset, and can be used immediately to perform economic actions like buying, selling, or paying debt, meeting immediate wants and needs.[1]

è  A market may be considered deeply liquid if there are ready and willing buyers and sellers in large quantities. 

è  investments in liquid markets such as the stock market or futures markets are considered to be more liquid than investments such as real estate, based on their ability to be converted quickly.


 "the central bank is moving the deposit reserve ratio again to soak up liquidity as hot money inflows and current account surplus remain large," said Xu Biao, an economist with China Merchants Bank in Shenzhen

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