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Liquidity is the type a high volume of activity in a market.
But a Liquid assets an asset that can be converted into cash quickly, with minimal impact to the price received in the open market.
Liquid asset treated as cash because we can easily convert them in to cash
liquidity means the ability to pay a company's debts.
A company's liquid assets can easily be converted into cash to meet financial obligations on short notice. Liquidity is the ability of a business to pay its debts using its liquid assets.