Liquid Assets Law and Legal Definition
Liquid assets means the total amount of funds that are in the form of cash. The term is also used to refer to other assets that can be converted to cash in a short period with no or minimal loss of value. Liquid assets can be immediately converted to cash. Liquid assets include:
cash;
demand deposits;
time and savings deposits; and
investments capable of being quickly converted into cash.
Sale will not affect the nature of assets. Liquid assets cannot promptly be turned into money. In some countries, precious metals like gold and silver are considered as liquid assets.
