Etymology
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liquid (adj.)

late 14c., "flowing, capable of flowing; neither solid nor gaseous," from Old French liquide "liquid, running" (13c.), from Latin liquidus "fluid, liquid, moist," figuratively "flowing, continuing," also of sounds and voices, from liquere "be fluid," related to liqui "to melt, flow," from PIE *wleik- "to flow, run."

In English, of sounds from 1630s. Financial sense of "capable of being converted to cash" is first recorded 1818, from earlier use in Scots Law (17c.) in reference to debts that had been proved (in court, etc.).

liquid (n.)

"a liquid substance," 1708, from liquid (adj.). Earlier it meant "sound of a liquid consonant" (1520s), following Latin liquidae, Greek hygra, applied to letters of an easy, "flowing" sound.

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Definitions of liquid
1
liquid (adj.)
existing as or having characteristics of a liquid; especially tending to flow;
water and milk and blood are liquid substances
liquid (adj.)
filled or brimming with tears;
sorrow made the eyes of many grow liquid
Synonyms: swimming
liquid (adj.)
clear and bright;
the liquid air of a spring morning
eyes shining with a liquid luster
Synonyms: limpid
liquid (adj.)
smooth and flowing in quality; entirely free of harshness;
the liquid song of a robin
liquid (adj.)
smooth and unconstrained in movement;
the liquid grace of a ballerina
Synonyms: fluent / fluid / smooth
liquid (adj.)
in cash or easily convertible to cash;
liquid (or fluid) assets
Synonyms: fluid
liquid (adj.)
changed from a solid to a liquid state;
Synonyms: melted / liquified
2
liquid (n.)
a substance that is liquid at room temperature and pressure;
liquid (n.)
the state in which a substance exhibits a characteristic readiness to flow with little or no tendency to disperse and relatively high incompressibility;
Synonyms: liquidness / liquidity / liquid state
liquid (n.)
fluid matter having no fixed shape but a fixed volume;
liquid (n.)
a frictionless continuant that is not a nasal consonant (especially `l' and `r');
From wordnet.princeton.edu