ECONOMICSthefactthatpeople, forexamplepeoplewho are makinginvestments,preferto havecash, orassetsthat can bequicklyexchangedforcash:Keynesdevelopedthetheoryofliquiditypreferenceas ameansofexplainingthefunctioningof thefinancialsystem.(Definition ofliquidity preferencefrom theCambridge Business English Dictionary? Cambridge University Press)
Examplesofliquidity preference
liquidity preferenceIn the money market equilibrium diagram, theliquiditypreferencefunction is simply the willingness to hold cash balances instead of securities.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.The money supply function for this situation is plotted on the same graph as theliquiditypreferencefunction.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.This is known asliquiditypreference.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.They argue that a lack of domestic investment during periods of low interest rates is the result of previous malinvestment and time preference rather thanliquiditypreference.FromWikipediaThis example is from Wikipedia and may be reused under a CC BY-SA license.That is, the variation of the banks'liquiditypreferencecomes into play.From theCambridge English CorpusUncertainty raisesliquiditypreferenceand forces agents to invest, if at all, in short-horizon activities such as trade and speculative ventures (black market operations, smuggling or petty trade).From theCambridge English CorpusIf they change what economists call theirliquiditypreference—their desire to hold money rather than buy goods—there will be a deficiency of demand.From theHansard archiveExample from the Hansard archive. Contains Parliamentary information licensed under theOpen Parliament Licence v3.0To discourage that and to encourage a certainliquiditypreferenceon the part of those who wish to embark on a more ambitious range of investments, the rule was applied.From theHansard archiveExample from the Hansard archive. Contains Parliamentary information licensed under theOpen Parliament Licence v3.0These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.#https://dictionary.cambridge.org//dictionary/english/liquidity-preference##
