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Liquidity preference refers to the?

Economics
JAMB 2002

Liquidity preference refers to the?

  • A. needs to borrow money for short periods to meet some temporary crises
  • B. wish to hold more funds for precautionary purpose
  • C. need to increase the money supply in order to lower the interest rate
  • D. demand to hold money as assets rather than as stocks
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Correct Answer: Option B
Explanation
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