Liquidity preference

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Revision as of 15:52, 23 July 2016 by imported>Doug Williamson (Expand and add links.)
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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.


See also