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    Economics B A-Level

    Liquidity

    What Liquidity means in Economics B A-Level, as defined for Pearson Edexcel.

    Definitions of Liquidity

    Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.

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    Reference: Pearson Edexcel

    The ability of investors to easily convert their equities back into cash by selling them to other investors in the secondary market.
    Pearson Edexcel · The role of the financial sector (study guide)
    Having enough cash to pay day-to-day liabilities, the lack of which creates the risk of insolvency.
    Pearson Edexcel · Business survival and cash flow (study guide)

    Topics that use Liquidity

    Related terms

    Using Liquidity in the exam

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    All Economics B A-Level terms