Question and answer
Menti?n 2 determinant of motives for holdin money
One reason people hold their assets as money is so that they can purchase goods and services. [ The money held for the purchase of goods and services may be for everyday transactions such as buying groceries or paying the rent, or it may be kept on hand for contingencies such as having the funds available to pay to have the car fixed or to pay for a trip to the doctor. The transactions demand for money is money people hold to pay for goods and services they anticipate buying. When you carry money in your purse or wallet to buy a movie ticket or maintain a checking account balance so you can
purchase groceries later in the month, you are holding the money as part of your transactions demand for money. The money people hold for contingencies represents their precautionary demand for money. Money held for precautionary purposes may include checking account balances kept for possible home repairs or health-care needs. People do not know precisely when the need for such expenditures will occur, but they can prepare for them by holding money so that they’ll have it available when the need arises. People also hold money for speculative purposes. Bond prices fluctuate constantly. As a result, holders of bonds not only earn interest but experience gains or losses in the value of their assets. Bondholders enjoy gains when bond prices rise and suffer losses when bond prices fall. Because of this, expectations play an important role as a determinant of the demand for bonds. Holding bonds is one alternative to holding money, so these same expectations can affect the demand for money. ]
Expert answered|selymi|Points 8092|
Question
Asked 4/25/2012 3:24:32 AM
0 Answers/Comments
This answer has been confirmed as correct and helpful.
s
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
34,170,254
questions answered
Popular Conversations
For each blank, write a word that is an antonym of the italicized ...
Weegy: 1. He couldn?t bear the cold of Alaska after living in the __________ of Texas. 2. He has been accused of ...
7/15/2021 1:53:06 PM| 12 Answers
1. a pronoun with no specific antecedent, as anybody, each, all, or ...
Weegy: Indefinite pronouns require specific antecedents. FALSE. User: 1. a pronoun with no specific antecedent, as ...
7/13/2021 2:16:11 PM| 6 Answers
Creative writing is usually done to give _____ and _____. Three forms ...
Weegy: Creative writing is usually done to give (pleasure) and (inspiration). Three forms of creative writing are ...
7/15/2021 3:29:59 AM| 3 Answers
Define muscular endurance
Weegy: Muscular endurance is the ability of a muscle or group of muscles to sustain repeated contractions against a ...
7/19/2021 7:32:03 PM| 3 Answers
The Zero law Means
7/21/2021 2:04:29 AM| 3 Answers
How many cities are in pennsylvania
7/22/2021 5:04:58 PM| 3 Answers
What’s 2 plus 7
Weegy: 2 + 2 is 4. User: That’s 2 + 8 Weegy: Hi, how can help you? User: What’s 2 + 8 Weegy: 2 * 2 = 4 User: ...
7/22/2021 7:30:18 PM| 3 Answers
S
L
Points 836 [Total 1547] Ratings 2 Comments 816 Invitations 0 Offline
S
L
P
P
Points 615 [Total 3558] Ratings 0 Comments 615 Invitations 0 Offline
S
L
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
P
1
L
Points 580 [Total 5141] Ratings 20 Comments 380 Invitations 0 Offline
S
L
Points 560 [Total 936] Ratings 4 Comments 520 Invitations 0 Offline
S
L
Points 457 [Total 458] Ratings 0 Comments 457 Invitations 0 Offline
S
L
L
P
Points 258 [Total 5669] Ratings 1 Comments 248 Invitations 0 Offline
S
L
Points 233 [Total 523] Ratings 0 Comments 233 Invitations 0 Offline
S
L
R
Points 188 [Total 679] Ratings 8 Comments 98 Invitations 1 Offline
S
L
1
1
1
1
1
Points 140 [Total 2081] Ratings 14 Comments 0 Invitations 0 Online
S
L
Points 116 [Total 264] Ratings 2 Comments 96 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.