What factors influence the level of liquidity preference in your country?
- The price level
- Level of speculation
- The degree of uncertainty
- investment climate
- conservativeness
- Level of transaction in an economy
- Level of interest rate, low interest rates lead to high liquid preference
- Banking habits
- Level of monetization
- Time/season preference such as Christmas season people have high liquid preference.
- Precautionary motives
- Current prices of financial assets e.g. bills
- Level of saving
- Level of development of financial infrastructure
- the nature and duration of wage payment
CATEGORIES Economics
TAGS Dr. Bbosa Science
