liquidity preference theory

liquidity preference theory　流动性偏好理论　

The idea that investors demand a premium for securities with longer maturities，which entail greater risk，because they would prefer to hold cash，which entails less risk.The more liquid an investment，the easier it is to sell quickly for its full value.Because interest rates are more volatile in the short term，the premium on short-versus medium-term securities will be greater than the premium on medium-versus long-term securities.