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liquid

adjective
liq·​uid | \ ˈli-kwəd How to pronounce liquid (audio) \

Definition of liquid

 (Entry 1 of 2)

1 : flowing freely like water liquid detergent
2 : having the properties of a liquid : being neither solid nor gaseous
3a : shining and clear large liquid eyes
b : being musical and free of harshness in sound the liquid song of the robin
c : smooth and unconstrained in movement the liquid grace of a ballerina
d : articulated without friction and capable of being prolonged like a vowel a liquid consonant
4a : consisting of or capable of ready conversion into cash liquid assets
b : capable of covering current liabilities (see liability sense 2) quickly with current assets

liquid

noun

Definition of liquid (Entry 2 of 2)

1 : a liquid consonant
2 : a fluid (such as water) that has no independent shape but has a definite volume and does not expand indefinitely and that is only slightly compressible
Other Words from liquid Synonyms & Antonyms More Example Sentences Learn More about liquid

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Other Words from liquid

Adjective

liquidity \ li-​ˈkwi-​də-​tē How to pronounce liquidity (audio) \ noun
liquidly \ ˈli-​kwəd-​lē How to pronounce liquidly (audio) \ adverb
liquidness noun

Synonyms & Antonyms for liquid

Synonyms: Adjective

flowing, fluent, fluid

Antonyms: Adjective

hard, nonliquid, solid

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Examples of liquid in a Sentence

Adjective

 Water and milk are liquid substances. The medicine is available in liquid form.
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Recent Examples on the Web: Adjective

 The recipe doesn’t call for any liquid because the fresh apples give up their juice as the cake bakes, and that creates liquid in the batter. — Washington Post, "Got a haul of apples for fall? Here’s what to do with them," 10 Sep. 2019 This trend in liquid pleasure suggests a preference for quaffs of difficult piquancy and upright pedigree. — Troy Patterson, The New Yorker, "How the Orange-Wine Fad Became an Irresistible Assault on Pleasure," 7 Sep. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'liquid.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of liquid

Adjective

14th century, in the meaning defined at sense 1

Noun

1530, in the meaning defined at sense 1

History and Etymology for liquid

Adjective and Noun

Middle English, from Middle French liquide, from Latin liquidus, from liquēre to be fluid; akin to Latin lixa water, lye, and perhaps to Old Irish fliuch damp

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More Definitions for liquid

liquid

adjective

Financial Definition of liquid

What It Is

Liquid refers to the ability to transfer hard assets to cash or the state of being in a position where one has sufficient cash on hand to accommodate any and all necessary financial obligations.

How It Works

Market liquidity is a financial phrase that describes the possibility of converting an asset to cash within a short period of time with minimal transaction costs while not affecting the price integrity of the asset itself.

Accounting liquidity is very similar but references the ability of a business to meet its ongoing obligations by having sufficient cash on hand to meet the demands of its creditors.

Bank liquidity refers to the ability of a bank or banks to meet the demands of its depositors. As the banking system is highly gicd, it does not have on hand all of the cash deposited in its system.  Rather, the bank has its capital invested or on loan elsewhere, which is how the bank generates its income. Called fractional-reserve banking, banks loan out money based on the amount of deposits they have. What they keep in the physical bank to meet the normal demands of depositors is called the reserve, which is only a fraction of what the bank lends out. Maintaining the reserve at optimal levels is referred to as bank liquidity. Without safeguards for liquidity in place, a "bank run" can incur, which any banking system wants to avoid at any cost.

Why It Matters

Any entity which needs to generate and use capital, whether it be a bank, a household, or a business, must have the proper balance between income producing assets and liquid assets such as cash which produce no income. Holding illiquid assets can be a problem when cash is quickly needed.  The consequences can be having to sell valuable assets at a time when the market is not liquid and income or value will be lost.

Source: Investing Answers

liquidity

noun

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