what is liquidity preferences?​

Answers

Answer 1
Liquidity preference, the premium that wealth holders demand for exchanging ready money or bank deposits for safe,

non-liquid assets such as government bonds.
Answer 2
Liquidity Preference Theory is a model that suggests that an investor should demand a higher interest rate or premium on securities with long-term maturities that carry greater risk because, all other factors being equal, investors prefer cash or other highly liquid holdings.

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