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When people worry about a glut of liquidity, they are thinking of the first of these concepts. If money is too abundant or too cheap, inflationary pressures may build up or bubbles may appear in financial markets—until central banks tighten policy or market opinion suddenly changes. A slackening of economic activity or a drop-in asset prices can leave households, businesses and financial institutions in trouble if their balance sheets are not liquid enough the second concept or if they cannot find a buyer for assets .