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The Theory of Liquidity Preference Was Developed by Irving Fisher

question 185

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The theory of liquidity preference was developed by Irving Fisher.


Definitions:

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock certificate, representing its official worth or repayment value at maturity.

Yield-to-Maturity

The total return anticipated on a bond if it is held until its maturity date, incorporating both interest payments and the adjustment of the bond's value.

Semi-annual

Occurring twice a year; pertaining to events, reports, payments, or dividends that happen or are issued every six months.

Yield to Maturity

The overall anticipated gain on a bond if retained until its expiration date.

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