Day8.Financial term|What is liquidity
@Tiger_Academy:
Liquidity is a very important concept, including asset liquidity, market liquidity, institutional liquidity and economic liquidity.First of all, the liquidity of an asset is the speed and ability of an asset to turn into cash. The most liquid asset is cash, which is stable, convenient and widely applicable. Illiquid assets, we call them fixed assets, or real assets, like houses.Second, look at market liquidity.The liquidity of the market depends on the amount of money versus the amount of assets.The liquidity of assets and the liquidity of markets will affect the liquidity of institutions. Institutional liquidity refers to the flow of funds in and out of institutions.Take the bank as an example. The entry of bank funds is the receipt of deposits, and the outflow of funds is the lending bus