Tag Archives | preference

The liquidity preference theory of interest explained

The liquidity preference theory of interest explained. Liquidity means shift ability without loss. It refers to easy convertibility. Money is the most liquid assets. Money commands universal acceptability. Everybody likes to hold assets in form of cash money.

Brief note on Liquidity Preference Theory of Interest

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.

Web Analytics Made Easy -
StatCounter
Kata Mutiara Kata Kata Mutiara Kata Kata Lucu Kata Mutiara Makanan Sehat Resep Masakan Kata Motivasi obat perangsang wanita