Final answer:
Liquidity refers to the amount of time it takes for an asset to be converted into cash. Cash is highly liquid, while assets like a savings account are less liquid.
Step-by-step explanation:
Liquidity refers to how easily one can exchange money or financial assets for a good or service. It is the amount of time that is expected to elapse until an asset is realized or otherwise converted into cash. For example, cash is highly liquid because it can be readily used to make purchases. On the other hand, an asset like a savings account is less liquid because withdrawing money may require a trip to the bank or an ATM.