why is liquidity important 
if markets are not liquid it becomes difficult to sell or convert assets or securities into cash you may for instance own a very rare and valuable family heirloom appraised at 150 000 however if there is not a market i e no buyers for your object then it is irrelevant since nobody will pay anywhere close to its appraised value it is very illiquid it may even require hiring an auction house to act as a broker and track down potentially interested parties which will take time and incur costs liquid assets however can be easily and quickly sold for their full value and with little cost companies also must hold enough liquid assets to cover their short term obligations like bills or payroll otherwise they could face a liquidity crisis which could lead to bankruptcy 