Liquid cash refers to cash on hand or an asset that can be easily converted to cash in a short amount of time. It is a type of liquid asset, which is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities. In terms of liquidity, cash is supreme since it is already in the form of money and can be used immediately. Other examples of liquid assets include checking and savings account balances, money market holdings, and U.S. Treasury bills.

Having liquid assets is important because it allows individuals and businesses to quickly access funds when they need them, such as in the case of unexpected expenses or emergencies. Liquid assets are also important for companies to meet short-term obligations. However, its important to recognize that holding liquid assets comes at a cost, as the more liquid an asset is, the less its value will increase over time.

In summary, liquid cash is cash on hand or an asset that can be easily converted to cash in a short amount of time. It is a type of liquid asset that is important for individuals and businesses to have for quick access to funds when needed.