Source : Webster's Revised Unabridged Dictionary (1913)

Liquidity \Li*quid"i*ty\ (l[i^]*kw[i^]d"[i^]*t[y^]), n. [L.
   liquiditas, fr. liquidus liquid: cf. F. liquidit['e].]
   The state or quality of being liquid.

Source : WordNet®

liquidity
     n 1: the state in which a substance exhibits a characteristic
          readiness to flow with little or no tendency to disperse
          and relatively high incompressibility [syn: {liquid}, {liquidness}]
     2: the property of flowing easily [syn: {fluidity}, {fluidness},
         {liquidness}, {runniness}]
     3: being in cash or easily convertible to cash; debt paying
        ability