Liquidity Crisis

Liquidity Crisis,

Definition of Liquidity Crisis:

  • A liquidity crisis is a financial situation characterized by a lack of liquidity or assets that can be easily converted into easily available liquidity in many companies or financial institutions at the same time.

    • The liquidity crisis is a simultaneous increase in demand and a decrease in the supply of liquidity to many financial institutions or other companies.
    • The reason for the liquidity crisis is the lack of large-scale maturity between banks and other companies and the lack of liquidity and other liquid funds when needed.
    • The liquidity crisis could be triggered by a major negative economic shock or a modest change in the economy.

Literal Meanings of Liquidity Crisis

Liquidity:

Meanings of Liquidity:
  1. Availability of cash for market or business.

Sentences of Liquidity
  1. Bank closures cause serious liquidity problems in small businesses

Crisis:

Meanings of Crisis:
  1. A time of great distress, difficulty, or danger.

Sentences of Crisis
  1. The current economic crisis

Synonyms of Crisis

catastrophe, disaster, cataclysm, emergency, calamity

Liquidity Crisis,

Liquidity Crisis Meanings:

  1. A liquidity crisis is a financial situation characterized by a simultaneous lack of liquidity or easily changing liquidity in many companies or financial institutions.

    • The liquidity crisis is a simultaneous increase in demand and a decrease in the supply of liquidity to many financial institutions or other companies.
    • The liquidity crisis is caused by the widening maturity gap between banks and other companies and the lack of cash and other liquidity when needed.
    • The liquidity crisis could be due to a major negative economic crisis or normal changes in the economy.

Literal Meanings of Liquidity Crisis

Liquidity:

Sentences of Liquidity
  1. Bank closures are creating serious liquidity problems for small businesses.

Crisis:

Meanings of Crisis:
  1. Very difficult or dangerous time

Synonyms of Crisis

bind, hard times, drama, pickle, jam, quandary, scrape, reversal, predicament, car crash, stress, hassle, sticky situation, hole, dilemma, hell, dire straits, plight, hell on earth, distress, trouble, fix, hardship, extremity, hot water, stew, setback, difficulty, mess