Liquid Liabilities

The debts or liabilities which are payable after short period of time normally within three month are called current liabilities. For example: Creditors, Account Payable, outstanding wages, and outstanding expense

Liquid liabilities are known as broad cash. they're the add of currency and deposits in the central bank, and transferable deposits and electronic currency , plus time and savings deposits, foreign currency transferable deposits, certificates of deposit, and securities repurchase agreements, plus travelers checks, foreign currency time deposits, commercial paper, and shares of mutual funds or market funds control by residents.