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Liquidity surplus refers to a situation in which a financial institution, such as a bank, has more liquid assets available than required to meet its short-term obligations. This excess liquidity can arise from various factors, including higher deposits or lower loan demand. A liquidity surplus allows banks to manage risks more effectively, invest in new opportunities, or provide loans, thus supporting economic growth. However, if not managed well, it can lead to lower returns on assets.

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3d ago

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what is liquidity ratio analysis?

RATIO ANALYSIS Meaning and definition of ratio analysis: Ratio analysis is a widely used tool of financial analysis. It is defined as the systematic use of ratio to interpret the financial statements...measure of a firms ability to meet short term cash payments. bassically liquidity ratios show how good a business is at paying off its debts. hope this helps :)liquidity ratios include current ratio (which is current assets/current liabilities) and acid test (which is current assets- stock/current liabilities.) liquidity ratio's shows how good a business is...


Why might a profitable business face liquidity problems?

No liquidity


What is liquidity in financial system?

Liquidity is basically how much cash is available.


How can a company improve its liquidity position?

How can the liquidity position of a company be improved


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what is the comparison between liquidity & yield analysis ??????


What is the ability to be used as or directly converted to cash called?

Liquidity


Why is liquidity?

In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.


What is a liquidity order?

ORDER OF LIQUIDITY is when items on a balance sheet are listed in order of liquidity. After cash, the other current assets are listed in order of liquidity or nearness to cash (i.e. Accounts Receivable first, then Inventory).


Shortage of liquidity in money market?

is the drain of excess liquidity from the money market


Why is liquidity important?

In business terms, liquidity is very important as it can help an establishment to quickly come out of debt. Liquidity is the measure of how sellable an investment or asset is.


What is the acronym of surplus?

surplus


What is liquidity decision?

The decision made for the management of current asset that affects a firm's liquidity.