The maturity preference theory states that investors prefer cash or other liquid investments, all other things being equal, so investors charge higher interest rates or premiums on risky long-term securities. A model that suggests that you need to.
Keynesian term preference theory describes the relationship between interest rates, liquidity preferences, and the amount of supply of money supply. It explains money and liquidity preferences and why long-term financial investments demand and receive high-interest rates.
Yield curve expectation theory states that the returns of financial assets with different maturities are primarily related to market expectations of future returns. Expectancy theory has played an important role at various times in both theoretical and political debates.
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