Meaning of “liquidity preference” in the English Dictionary


"liquidity preference" in Business English

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liquidity preferencenoun [ U ]

uk us

ECONOMICS the fact that people, for example people who are making investments, prefer to have cash, or assets that can be quickly exchanged for cash:

Keynes developed the theory of liquidity preference as a means of explaining the functioning of the financial system.

(Definition of “liquidity preference” from the Cambridge Business English Dictionary © Cambridge University Press)