Liquidity
Drag words into the blanks.
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 1 may build up or bubbles may appear in financial markets — until central banks tighten policy or market opinion suddenly changes. A slackening of 2 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 3.
Word box (alphabetical)
Opens question #110253 in the RealPTE practice screen.
More Reading: Fill in the Blanks questions
Reading: Fill in the Blanks format (Pearson)
Pearson's name: Fill in the Blanks (Drag and Drop)
| Prompt | Text up to 80 words |
|---|---|
| Time to answer | Not set per question (Part 2 lasts 23–30 minutes) |
| Skills assessed | Reading |
How it is scored
- The box has more words than there are gaps.
- Partial credit applies: a partly correct response still scores.
Source: Pearson, PTE Academic & UKVI test format, Part 2: Reading, checked 9 October 2026.