time of liquidity refers to what?

Dear Student, time of liquidity implies the time taken in encashing an asset. Say, you have a chair worth Rs 1,000 and you have Rs 500- which one of the two is more liquid? Actually, by liquidity, I mean how fast something can be converted in cash (i.e. the most liquid asset). Obviously, as the answer to my question is cash of Rs 500. You need to convert a 500 rupee note further, since it is already in the most ready form. You can straightly go to the market and spend this 500 rupee note. However, can you do the same thing with the chair. Not possible, you certainly need some time to sell-off the chair and then you will get the cash. Suppose it takes you 4 days to sell-off the chair, so in this case, 4 days is the time of liquidating the chair.

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