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Question
Distinguish between liquidity preference and permanence preference.
Distinguish Between
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Solution
| Liquidity Preference Method | Permanence Preference Method |
| This strategy arranges assets and liabilities based on liquidity. | This strategy arranges assets and liabilities in order of permanence on the balance sheet. |
| The more liquid the assets, the earlier they appear. | Permanent assets and liabilities are shown earlier. |
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