Shared Flashcard Set

Details

Liquidity and Credit
N/A
6
Finance
Undergraduate 4
04/21/2015

Additional Finance Flashcards

 


 

Cards

Term
Liquidity
Definition
- a firms capacity to generate cash to meet cash demands as they occur and to provide funds for responding to unanticipated events
Term
Purposes of Liquidity
Definition

- Transactions

- Precautionary or Safety

- Investment

Term
Transactions
Definition
- demand for liquidity that involves having sufficient cash available to meet known cash demands arising from various market transactions anticipated to occur in the near future
Term
Precautionary or Safety
Definition
- the demand for liquidity in which cash is needed for responding to possible adverisities in the business or household
Term
Investment
Definition
- demand for liquidity in which funds are needed for responding to new, unanticipated investment opportunities
Term
Sources of Liquidity
Definition

- Asset liquidity

- current assets: most liquid

Supporting users have an ad free experience!