Brain is protected by bony skull and a liquid called the spinal fluid. The fluid acts as a cushion between brain and skull. It is a clear, colorless body fluid found in the brain and spinal cord. it is produced in the choroid plexuses of the ventricles of the brain, and absorbed in the arachnoid granulations.The spinal fluid occupies the subarachnoid space (between the arachnoid mater and the pia meter) and the ventricular system around and inside the brain and spinal cord.