The liquid is called plasma and it contains 1) antibodies, which destroys foreign matter like bacteria, 2) hormones, which can have effect on another part of your body where needed, 3) clot-forming proteins, which form "plugs" to prevent blood loss.
The solid matter in your blood is mostly red blood cells. Red blood cells contain hemoglobin, which is what "grabs" and "lets go" of oxygen when needed in different parts of the body. There are also white blood cells in the solid matter. White blood cells are another part of your immune system, they protect aginst bacteria and dangerous substances that enter your body. Platelets, also found as solid matter, collect wherever the walls of blood vessels are damaged and form clots to stop blood loss.
