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
Meanings of Liquidity:
Availability of cash for market or business.
Sentences of Liquidity
Bank closures cause serious liquidity problems in small businesses
Meanings of Crisis:
A time of great distress, difficulty, or danger.
Sentences of Crisis
The current economic crisis
Synonyms of Crisis
catastrophe, disaster, cataclysm, emergency, calamity