McqMate
| Q. |
Liquidity Preference means - |
| A. | holding assets in the form of bonds and shares |
| B. | holding assets in the form of cash |
| C. | creation of immovable property |
| D. | assets in the form of jewellery |
| Answer» B. holding assets in the form of cash | |
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Explanation: Liquidity preference refers to the demand for money, considered as liquidity. The concept was first developed by John Maynard Keynes in his book The General Theory of Employment, Interest and Money (1936). It is the desire to hold money rather than other assets, in Keynesian theory based on motives of transactions, precaution, and speculation. |
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