What are the measures of liquidity risk?
What are the measures of liquidity risk? Measurement of Liquidity Risk. One of the prime measurement of liquidity risk is the application of the Current Ratio. Current ratio = current assets/current liabilities read more. The current ratio is the value of current or Short-term liabilities as per Current Liabilities. What are the two types of liquidity? Cash is the most liquid of assets, while tangible items are less liquid. The two main types of liquidity include market liquidity and accounting liquidity. Current, quick, and cash ratios are most commonly used to measure liquidity. What is liquidity risk and how it...