Friday, 1 July 2011

in the financial markets why would a borrower want to minimise liquidity?

Question by rubber losanges: in the financial markets why would a borrower want to minimise liquidity?
why would a borrower in the financial markets want to minimise liquidity?i have told that whilst a lender would always want to maximise liquidity- how would a borrower's liquidity preference depend on what he feels like?

Bear in mind this is a question regarding financial markets in theory as its for univeristy


Answer
Answer by nsxplus1from the borrowers point of view money is a

Corporate Finance

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