Liquidity preference: Difference between revisions
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1. | |||
A desire to hold money in liquid form, for example cash or bonds. | A desire to hold money in liquid form, for example cash or bonds. | ||
This may be due to the transactions motive, the precautions motive or the speculative motive. | This may be due to the transactions motive, the precautions motive or the speculative motive. | ||
2. | |||
More broadly, a preference of investors to invest in shorter-term and more liquid assets. | |||
== See also == | == See also == | ||
* [[Liquid]] | |||
* [[Maturity transformation]] | |||
* [[Precautions motive]] | * [[Precautions motive]] | ||
* [[Speculative motive]] | * [[Speculative motive]] |
Revision as of 15:52, 23 July 2016
1.
A desire to hold money in liquid form, for example cash or bonds.
This may be due to the transactions motive, the precautions motive or the speculative motive.
2.
More broadly, a preference of investors to invest in shorter-term and more liquid assets.