Why is too much liquidity not a good, Finance Basics

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Why is too much liquidity not a good

Problem:

Why is too much liquidity not a good thing?

Additional Information:

This question is basically belongs to Accounting and it explains why too much liquidity can be not a good thing for a business or a company. This has been stated in the solution briefly.

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Finance Basics: Why is too much liquidity not a good

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