54. What’s the difference between liquidity and solvency?

Quick Answer:
Liquidity measures short-term cash availability; solvency measures long-term ability to meet obligations.

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Learn More:
You can be solvent but illiquid—owning assets but lacking cash for immediate needs. Liquidity ensures flexibility, solvency ensures stability. Tracking both provides a more accurate picture of financial resilience. Findex helps users see how assets, liabilities, and cash flow interact in real time.

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