Liquidity Preference Theory,
Liquidity Preference Theory Meanings:
Liquidity Preference Theory is a model that suggests that investors should charge higher interest rates or premiums on long-term securities that offer higher risk, as all other investor money on equity terms or other of higher liquidity. Prefer assets.
- Liquidity preference theory refers to the demand for money as measured by liquidity.
- John Maynard Keynes mentions this concept in his book The General Theory of Employment, Interest and Money (1936) and discusses the relationship between interest rates and supply and demand.
- In fact, the faster an asset can be converted into cash, the more liquid it will be.
Literal Meanings of Liquidity Preference Theory
Meanings of Liquidity:
Cash availability for markets or companies.
Sentences of Liquidity
Banks shut down, causing severe liquidity woes in small businesses
Meanings of Preference:
A better taste for an alternative than another.
Previous rights or preferences, especially those related to debt repayment.
Sentences of Preference
Choose the time, not the time
Debt for the community must come first
Synonyms of Preference
taste, desire, liking, precedency, bias, highest place, greater importance, bent, preference, fondness, weight, partiality, predilection, weighting, inclination, precedence, pre-eminence, wish, first place, proclivity, the lead, primacy, penchant, predisposition, leaning
Meanings of Theory:
A system of options or ideas for explaining something based on basic principles, regardless of how it is explained.
Sentences of Theory
Darwin's theory of evolution
Synonyms of Theory
postulate, surmise, thesis, presumption, speculation, notion, assumption, feeling, postulation, guess, suspicion, supposition, proposition, hunch, hypothesis, presupposition, conjecture, premise