liquidity preference

noun

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

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Cite this Entry

“Liquidity preference.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/liquidity%20preference. Accessed 19 Oct. 2021.

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