Dynamic balance and Liquidity preference: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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Dynamic balance is a form of treasury organisation and authority which is a compromise between full centralisation, and decentralisation.
A desire to hold money in liquid form, for example cash or bonds.  


Dynamic balance involves the sharing of responsibility between the centre and subsidiaries. Authority moves between centre and subsidiaries on the basis of a continuing dialogue about which party is best suited to make particular decisions.
This may be due to the transactions motive, the precautions motive or the speculative motive.




== See also ==
== See also ==
*[[Centralised]]
* [[Precautions motive]]
*[[Decentralised]]
* [[Speculative motive]]
* [[Transactions motive]]

Revision as of 11:12, 22 August 2013

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.


See also