ABSTRACT
The need for liquidity may be fulfilled by a wide range of assets, from money and short-term financial assets to old masters and land. However, the chosen assets must be expected to be quickly convertible into the means of payment at terms which enable the holders to discharge their contracts, to face unforeseen needs for money, or to take advantage of unexpected opportunities. To rank the assets according to their liquidity and to choose amongst them, one must form expectations now concerning the terms of immediate convertibility of each of these assets into the accepted means of payment in the future.
