It is characteristic of instrumental capital (e.g. a machine) or of consumption capital (e.g. a house) which is in use, that its yield should normally exceed its carrying cost, whilst its liquidity premium is probably negligible; of a stock of liquid goods or of surplus laid up instrumental or consumption capital that it should incur a carrying cost in terms of itself without any yield to set off against it, the liquiditypremium in this case also being usually negligible as soon as stocks exceed a moderate level, though capable of being sigmficant in special circumstances; and of money that its yield is nil and its carrying cost negligible, but its liquidity premium substantial.