liquidityli·quid·i·ty /lɪˈkwɪdəti/ noun [uncountableU]1ECONOMICS the amount of money in an economy at a particular timeThe central bank injected liquidity into the economy (=increased liquidity) last month when it began repurchasing government bonds.
→ see also money supply 2FINANCE when investments can easily be bought and sold on a particular financial marketAs investors learned in the last stock market crash, liquidity can disappear quickly when everyone tries to sell at once.
3FINANCEACCOUNTING the ability of a company to make payments to employees and suppliers, interest payments to banks etcDisappointing sales and resulting losses have caused liquidity problems.
4BANKING the ability of a bank to pay back people and organizations that have put money in the bank and that want to take their money outCustomers began withdrawing deposits, causing difficulties for the liquidity of the bank.