What does it mean

Liquidity   What is the Meaning of Liquidity? Liquidity refers to the ease with which an asset, such as cash or a security, can be converted into cash without causing a significant impact on its market value. It is a measure of how quickly and easily an asset can be bought or sold in the market, without causing a significant change in its price. In simpler terms, liquidity describes the ability to convert an asset into cash quickly, with minimal loss of value. Highly liquid assets are those that can be easily bought or sold in large volumes without significantly affecting their market price. Examples of highly liquid assets include cash, government bonds, and actively traded stocks on major stock exchanges. On the other hand, assets with low liquidity are not easily convertible into cash without impacting their market value. These assets may have limited trading activity or face certain restrictions or penalties when being sold. Examples of assets with low liquidity include certai...

Inflation   Inflation refers to the general increase in prices of goods and services over time, leading to a decrease in the purchasing power of money. In simpler terms, it means that as time goes on, the same amount of money can buy fewer goods or services. When inflation occurs, the prices of various items in the economy tend to rise. For example, the cost of food, housing, transportation, and other everyday items may increase. This means that consumers need more money to purchase the same quantity of goods they could have bought for less money in the past. Inflation is typically measured by tracking changes in the average price level of a basket of goods and services over a specific period. Economists and policymakers often use various indices, such as the Consumer Price Index (CPI), to monitor inflation and make informed decisions. Inflation can have both positive and negative effects on the economy. Mild and controlled inflation is generally considered healthy for an economy ...