Please ensure Javascript is enabled for purposes of website accessibility

Definition of Liquidity

| February 22, 2022

As interest rates start to rise throughout 2022, the ability to put your liquid cash to work will mean new sources of revenue that go right to your bottom line.

Share This Post

Liquidity can probably be best defined as “available cash when you need it.”  

three+one liquidity managementKeep in mind the words “when you need it.” That doesn’t mean when you think you might need it, but when you actually need it.

All too often, cash is left on the sidelines as a dormant asset. That’s because too many financial professionals are nervous of “just-in-case” scenarios that may play out. That is not true liquidity.  

As interest rates start to rise throughout 2022, the ability to put your liquid cash to work will mean new sources of revenue that go right to your bottom line—right where and when you need it.  That is what true liquidity is all about.

More To Explore

Budgeting 2025 Interest Earnings – Average rate 4.00%

Earning 4.0% or more on all cash in 2025 will allow you to offset the effects of inflation and ease stresses on your upcoming budget.
Read More

Bank Stability, Simplified

The ability to spot vulnerabilities before they escalate allows finance officials to take proactive steps to safeguard their assets.
Read More