What are Liquid Assets ?

The goods which can be exchanged fast and easy to money are considered as liquid assets. In the criteria of liquid assets enters: checks, money market accounts, stocks, government bonds and some deposits. For an asset to be considered as liquid assets it has to be exchanged in to cash with relative ease and it has to have enough participants to absorb the selling with out jeopardizing the price. The foreign exchange market is currently considered as the most liquid market because each day trillions of dollars exchange hands and it is impossible for one person to influence by anyway the market prices.