The price someone is willing to pay, usually in the form of a lower return, for a liquid asset compared with an illiquid one. – In the case of a loan, the compensation included in the interest rate for the fact that the creditor cannot dispose of the money lent during the term of the contract. – See liquidation, maturity premium, liquidity position, liquidity premium theory, liquidity preference, liquidity ratio, quick ratio, interest rate risk. – Cf. ECB Monthly Bulletin of April 2008, pp. 26 et seq. (liquidity premia and break-even inflation rate: explanations, overviews), Deutsche Bundesbank Monthly Bulletin of July 2008, p. 36 (premium for privately placed public bonds).
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/