The liquidity preference theory of Interest has been propounded by J.M. Keynes. According to him, “Interest is the reward for parting with liquidity.” In the words of Keynes interest is a monetary phenomenon. Liquidity means the convenience of holding cash.
Interest has been defined as the price for the use of capital. It is net interest which a part of gross interest. When interest includes the payment for risks, inconveniences, management and money capital, it is called gross interest.
With greater interest, the processing of information at the time of learning becomes deeper. At the deepest level, the information is processed semantically, and is linked by a network of associations with various cues in the LTM.
Acharya Prafullachandra Roy, who in his days used so much to influence, the minds of Youngman, was never tried of reminding them, ‘Every Englishman rides a hobby-horse”.