preserves if the existence of the lhs implies the existence of the rhs and
lifts if the existence of the rhs implies the existence of the lhs and
To be more precise we need to take into consideration that limits are not mere objects but limiting cones.
preserves limits if for all cones we have that limiting implies limiting.
Example: Right-adjoint functors preserve limits.
detects limits if the existence of implies the existence of .
Example: The inclusion of a full reflective subcategory detects colimits.[1] Regularly monadic functors detect colimits.[2]
lifts limits if implies that there is a limiting with .
uniquely lifts limits if implies that there is a unique limiting cone with .
Example: lifts limits uniquely, but does not create nor reflect limits (as defined below).
creates limits if implies that there is a unique cone with and, moreover, is limiting.
Example: There is only one way to equip the cartesian product of the underlying sets of two groups with a group structure and, moreover, the resulting group is the group-product of the two groups. More generally, limits of algebras are calculated as in Set. More generally still, monadic functors create limits.
Proposition: creates limits iff lifts limits uniquely and reflects limits.
In other words, if reflects limits only limiting cones can map to a limiting cone. On the other hand, if lifts limits then there is at least one limiting cone that maps to any given limiting cone of the codomain.
Example: It is easy to find fully faithful functors that do not lift limits. For example, if has a terminal object and is a full subcategory without terminal object then there is no cone in over the empty diagram that is limiting in . So reflects terminal objects but does not lift them.
Proposition: If lifts limits and if limits exist in , then has limits and preserves them.
Remark: Leinster, p.140, suggests to call the definition above strictly creating limits and to defined creation of limits instead as follows. If has a limit then there exists a cone on whose image under is a limit cone, and that every such cone is itself a limit cone. The nLab, equivalently, says that creates the limit of if whenever the limit of exists then the limit of exists and preserves and reflects it.
Reflective subcategories
The next result has many applications. Note that it says something about a left-adjoint preserving certain limits.
Theorem: A full reflective subcategory closed under isomorphisms is closed under limits.
References
Chapter 13 on "Functors and Limits" of (Adamek, Herrlich, Strecker) gives a useful overview of the different ways functors may interact with limits. preserves limits (p. 223). creates limits and lift limits (uniquely) (p. 227). reflects and detects limits (p. 229).