The meaning of "high liquidity" is that it can be easily converted to cash. If you know you need cash, then you need high liquidity.
What is the Liquidity?
In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the price at which an asset can be sold, and how quickly it can be sold.
How to determine?
An investment with more liquidity would be ideal for someone who knows they will need cash in the near future.
The meaning of "high liquidity" is that it can be easily converted to cash. If you know you need cash, then you need high liquidity.
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