Difference between Liquidity and Fluidity

What is the difference between Liquidity and Fluidity?

Liquidity as a noun is the state or property of being liquid. while Fluidity as a noun is the state of being fluid rather than viscous

Liquidity

Part of speech: noun

Definition: The state or property of being liquid. An asset's property of being able to be sold without affecting its value; the degree to which it can be easily converted into cash. Availability of cash over short term: ability to service short-term debt.

Example sentence: Among other objectives, liquidity guidelines must take into account the risks that inadequate liquidity planning by major financial firms pose for the broader financial system, and they must ensure that these firms do not become excessively reliant on liquidity support from the central bank.

Fluidity

Part of speech: noun

Definition: The state of being fluid rather than viscousA measure of the extent to which something is fluid. The reciprocal of its viscosity.

Example sentence: The directors that I end up having a really good time with are the ones that understand the fluidity of the medium and are interested in catching lightning in a bottle.

We hope you now know whether to use Liquidity or Fluidity in your sentence.

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