liquidity

What is the meaning of Cash Flow?

Cash flow refers to the cash or cash-equivalent received or paid by the company as payment to its creditors. It is analyzed to determine and analyse the liquidity position of the company. It gives a clear picture of the total incoming cash and the amount going out of the business. It can thus be either […]

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What is the meaning of ‘Abandonment Value’?

Abandonment Value of a project is the correspondent cash value on immediate liquidation or sale after removing all debts which have to be paid back. In other words, it is also the liquidation value of the project or an asset. Generally, if the estimated resale value of the project or asset is higher than the […]

What is Bank Rate?

Bank Rate is defined as the rate at which Central Bank gives loans to other domestic banks like commercial banks, cooperative banks, development banks etc. The loans are generally given on a short-term basis. It is the way the Central Bank manages the economic activity in the country. The Bank Rate, in turn, goes to […]

Near Money

Near money is a concept closely related to liquidity. Liquidity refers to how fast the money can perform the economic actions like buying, selling, or paying debt, meeting immediate wants and needs. There should not be loss of time and value in perming the economic functions. Thus, liquidity of an asset is the easy conversion […]

Key facts about Treasury Bills in India

The bill market is a sub-market of the money market in India. There are two types of bills viz. Treasury Bills and commercial bills. While Treasury Bills or T-Bills are issued by the Central Government; Commercial Bills are issued by financial institutions. Types of Treasury Bills Treasury Bills are basically instruments for short term (maturities […]

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