The measure of liquidity determines how fast you can withdraw the money you invested if you need it or desire it.
Liquidity and Return on investment
In the event of an emergency or other financial setback, you can access liquidity in the form of your emergency savings account or the cash you have on hand. Additionally, liquidity is crucial since it enables you to take advantage of chances. A common profitability statistic used to assess how well an investment has done is the Return on Investment (ROI). ROI aims to quantify the amount of return on a specific investment in relation to the cost of the investment.
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