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liquidity ratio
li·quid·i·ty ra·tio (plural li·quid·i·ty ra·tios)


noun 
Definition:
 
ratio measuring ability to pay debts: the proportion of total assets that are readily convertible into cash that a clearing bank must maintain in order to repay deposits on demand
Encarta® World English Dictionary [North American Edition] © & (P)2009 Microsoft Corporation. All rights reserved. Developed for Microsoft by Bloomsbury Publishing Plc.
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