li·quid·i·ty \liˈkwidəd.ē, -ətē, -i\noun (-es) Etymology: French or Latin; French liquidité, from Latin liquiditat-, liquiditas, from liquidus liquid + -itat-, -itas -ity — more at liquid 1.: the quality or state of being liquid 2.: the quality or state of possessing liquid assets < a bank that has progressively increased its liquidity >