They also increase stability and allow investors to maintain immediate liquidity.
Cambridge theory argued that people hold money for two reasons: to facilitate transactions and to maintain liquidity.
Also, most lenders desire to reduce risk and maintain maximum liquidity.
Financial institutions must maintain sufficient liquidity in their assets to meet the demands of depositors.
As we have seen, it is important for banks to maintain adequate liquidity.
It requires all recognized banks to maintain adequate liquidity: this is called prudential control.
Banks aim to make profits, but they must also maintain sufficient liquidity.
But he said the Treasury would "maintain liquidity in our benchmark issues as long as we can."
A stock exchange has specialists or market makers to maintain liquidity.
This may give rise to huge problems in terms of accomplishing the original reduction target at the same time as maintaining financial liquidity.