Economics A-Level
Liquidity
What Liquidity means in Economics A-Level, as defined for AQA.
Definitions of Liquidity
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Reference: AQA
The ability of a bank to meet short-term withdrawal requests from depositors using cash or near-cash assets.
A feature of the short-term assets dealt in by the money market, which manages short-term liquidity.
Topics that use Liquidity
- Commercial banks and investment banks (AQA A-Level)
- The structure of financial markets and financial (AQA A-Level)
Related terms
- Financial intermediation
- Financial markets
- Money supply
- Broad money
- Commercial banks
- Coupon
- Credit creation
- Equity
Using Liquidity in the exam
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