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TeachMeFinance.com - explain liquid assets Liquid Assets -- Cash, checks and easily-convertible securities available to meet immediate and emergency needs. another definition... liquid assets -- the total amount of funds that are in the form of cash or can quickly be converted to cash. These include (1) cash; (2) demand deposits; (3) time and savings deposits; and (4) investments capable of being quickly converted into cash without significant loss, either through their sale or through the scheduled return of principal at the end of a short time remaining to maturity. historic definition... Liquid assets -- Practically the same as quick assets ; assets in cash or readily convertible into cash. The assets of a bank, for instance, are liquid assets when they are not tied up in time loans or in securities which cannot promptly be turned into money. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.