Consumption and Liquidity premium: Difference between pages

Latest revision as of 17:57, 29 December 2022

1.

A term used to explain a difference between two types of financial securities, for example stocks, that have all the same qualities except liquidity.

2.

A premium that investors will demand when any given security can not be easily converted into cash, and converted at the fair market value.

When the liquidity premium is high, then the asset is said to be illiquid, which will cause prices to fall, and interest rates to rise.

@@ Line 1: / Line 1: @@
-.  ''Economics - markets''.
+.
-The use of goods or services in such a way that they cannot be used again.
+A term used to explain a difference between two types of financial securities, for example stocks, that have all the same qualities except liquidity.
-.  ''Economics - households''.
+.
-Spending on goods or services that cannot be reused.
+A premium that investors will demand when any given security can not be easily converted into cash, and converted at the fair market value.
-Contrasted with investment or saving.
+When the liquidity premium is high, then the asset is said to be illiquid, which will cause prices to fall, and interest rates to rise.
-==See also==
+== See also ==
-*[[Consumer]]
+* [[Illiquid]]
-*[[Consumer goods]]
+* [[Liquidity]]
-*[[Consumer Prices Index]]  (CPI)
+* [[Premium]]
-*[[Consumption expenditure]]
-*[[Consumption function]]
-* [[Demand]]
-* [[Economics]]
-* [[Economy]]
-*[[Expenditure]]
-*[[Fast moving consumer goods]]
-* [[Firm]]
-*[[Harmonised index of consumer prices]]  (HICP)
-* [[High street]]
-* [[Household]]
-*[[Investment]]
-* [[Marginal propensity to consume]]
-* [[Market]]
-* [[Market mechanism]]
-* [[Personal Consumption Expenditures price index]]
-*[[Poverty]]
-*[[Producer]]
-*[[Retail ]]
-*[[Retail Prices Index]]
-*[[Savings]]
-* [[Supply]]
-* [[Wholesale]]
-[[Category:The_business_context]]
+[[Category:Liquidity_management]]