Definition of liquidity preference
: preference for actual cash rather than for income-yielding investments specifically : this preference insofar as it affects the relationship between cash balances and interest rates
Comments on liquidity preference
What made you want to look up liquidity preference? Please tell us where you read or heard it (including the quote, if possible).
Test Your Vocabulary
Namesakes Word Quiz
- Which of the following is a fruit named after a Moroccan seaport?
Can you spell these 10 commonly misspelled words?
TAKE THE QUIZ
Test Your Knowledge - and learn some interesting things along the way.
TAKE THE QUIZLove words? Need even more definitions?
Merriam-Webster unabridgedWords at Play
Ask the Editors
Word Games
Share liquidity preference