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Username: LuckyWoman Rating:  Asked to: Jun Wang Date Created: 04 Sep 2015 |
| Category | 28 |
| Tag | Financial |
| Question | Please give the definition of a liquidity cushion. |
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Hello LuckyWoman, A reserve fund for a company or individual made up of highly liquid investments. A liquidity cushion relates to a business or individual holding an ample amount of cash, or other highly liquid assets, in relation to debt, so that a short-term liquidity crunch or other unexpected event will not lead to potentially disastrous consequences. |
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