When we talk about "liquid assets", we refer to the cash or assets that can be easily converted to cash. There are several synonyms for liquid assets, such as "readily available funds", "cash equivalents", "marketable securities", "short-term investments", and "liquid funds". These words denote any financial instrument that can be quickly sold or exchanged for cash. Examples of liquid assets include government bonds, stocks, mutual funds, and money market accounts. These assets provide investors with the flexibility to meet financial obligations and make purchases quickly. Additionally, liquid assets are crucial in measuring financial ratios, such as current ratio and quick ratio, which help investors evaluate a company's financial health.