Liquidity creation is arranging an emergency fund for any unforeseen happening, sudden expenses or any financial setback. In simple terms,  liquidity creation is nothing but to get your money whenever you need it.

Liquidity creation also plays an important role as it allows you to seize opportunities present.

If you have cash and easy access to funds and a great deal comes along, then it’s easier for you to cease that opportunity. Cash, savings account, checkable account are liquid assets because they can be easily converted into cash as and when required.