Economics A-Level
Liquidity ratio
What Liquidity ratio means in Economics A-Level, as defined for AQA.
Definition of Liquidity ratio
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Reference: AQA
A measure of the proportion of a bank's assets held in highly liquid forms, such as cash or central bank reserves, compared to its short-term liabilities.
Topics that use Liquidity ratio
- The regulation of the financial system (AQA A-Level)
Related terms
- Bank run
- Capital ratio
- Consumer protection
- Financial stability
- Insolvency
- Macro-prudential policy
- Macroprudential regulation
- Maturity transformation
Using Liquidity ratio in the exam
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