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Solvency is the ability of an entity to meet its long-term financial obligations. Solvency is is important for the company to stay in business, but also the company needs liquidity to thrive.
Liquidity is the entity's company's ability to meet its short term obligations. It is the amount of cash a company can lay its hands on to pay its short term debts. e.g cash short-term investments are examples of liquidity.