Tamil Nadu Board of Secondary EducationHSC Arts Class 11th
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Theories of Interest

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  • Abstinence Theory or Waiting Theory
  • Agio Theory of Interest/The Psychological Theory ofInterest/Time Preference Theory
  • Loanable Funds Theory/The Neo Classical Theory
  1. Demand for Loanable Funds
  2. Supply of Loanable Funds
  3. Equilibrium
  4. Supply of and Demand for Loanable Funds 
  • Keynes’ Liquidity Preference Theory of Interest or The Monetary Theory of Interest 
  1. Meaning of Liquidity Preference
  2. Motives of Demand for Money
  3. Determination of Rate of Interest
  4. Equilibrium between Demand and Supply of Money
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