Question

What is liquidity?

Answer 1

the degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity. Liquid assests are the one taht can be easily bought or sold.

the ability to convert an assest to cash quickly, which is also known as marketability.

Answer 2

Liquidity is the capability of an entity to cover it's short-term financial obligation. That is compare to solvency which is the equivalent but it is for the long term financial obligation.

Answer 3

irelana answer is correct, gold is an example of liquidity asset