Answer :
Because of their high liquidity, money market securities are referred to as "cash equivalents."
What is liquidity?
The term "liquidity" describes how quickly and easily a security or asset can be turned into cash without depreciating in value. The most liquid asset is cash, while the least liquid asset is tangible goods.
The capacity to make timely payments on debts is known as liquidity. An indication of a company's financial health is liquidity. Every profitable corporation or institution will eventually find itself bankrupt after failing to pay its short-term creditors their debts.
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