hi im vinuta, i want to know the meaning of liquidity? i
know that it means converting the assets into cash, but i
want to know something more than that, so kindly help me?
Answer Posted / balaji
hi vinuta, this is balaji. as you told liquidity is the
convertibility of fixed assets into cash. if all funds are
locked up in fixed assets, company will not be able to meet
its day to day transactions. so some funds should be liquid.
as we know american banks are facing liquidity crisis
because they aquired homes for which they had given loans
because of default in re payment. now they are not able to
sell those houses and convert it into cash.
Is This Answer Correct ? | 5 Yes | 0 No |
Post New Answer View All Answers
When rbi was established?
im ravi frm tumkur i did mba in finance.i m seeking job in finance if any body knows abt job vecancies or walk in in bangalore please inform me my cell no is 9986288362 and my e mail id is ravigr362@gmail.com
What Are Payroll Cards?
What is m-commerce?
what is Actuarial life tables?
Do you know anything about economic survey?
What is 'spns'?
What is 'Fixed' APR and 'Variable' APR?
What do you mean by interest coverage ratio? What does it indicate?
Tell some of the projects you did in the past?
What is the difference between Direct and Indirect Taxes?Give examples?
What is internal debt management?
What do you know about RBI? State its role economic development of the nation?
Which is the first bank that was incorporated at the initiative of world bank and in which year?
What propositions should be kept in mind while working with debtors turnover ratio?