answersLogoWhite

0

What are speculative balances?

Updated: 9/11/2023
User Avatar

Wiki User

16y ago

Best Answer

Speculative balances are pretty much money used to capitalize on an uncertain gain in the future.

For example... When interest rates are high people prefer to buy bonds because they believe that the next movement in the rate of interest will be downward so the bond prices will increase and they will make capital gains. But as interest rates decrease more and more people will stop investing in bonds because they believe the next movement in the interest rate will be up and bond prices will fall thus leading to capital losses. To avoid these capital losses, people hold more speculative balances (money).

User Avatar

Wiki User

16y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are speculative balances?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is speculative business and non speculative business?

What is speculative business and non speculative business anyone


Explain the three motives for holding money?

The Transaction MotiveThe Precautionary MotiveThe Speculative MotiveThe Transaction MotivePeople will keep certain stock of money all the time to enable them to carry out their transactions.The Precautionary MotiveThe people also desire to hold some additional cash balances against unforeseen circumstances.The Speculative MotiveThe Speculative Motive implies the desire on the part of the public to keep certain amount of cash in reserve to make speculative gains out of the purchase and sale of securities.


How can you use speculative in a sentence?

He was speculative at themselves


What is speculative carry generation?

what is speculative carry generation?


When was Speculative Grammarian created?

Speculative Grammarian was created in 1988.


When was Tomorrow Speculative Fiction created?

Tomorrow Speculative Fiction was created in 1993.


Do Bad debts in a business a speculative risk?

yes it is a speculative risk.


Is income from share speculative business income?

yes it is speculative business


What do you need for a speculative essay?

Well, dialogue, vocabulary, and you must follow the prompt correctly. A Speculative Essay is really a Speculative Prompt. It is a story.


When did Tomorrow Speculative Fiction end?

Tomorrow Speculative Fiction ended in 2000.


When was Journal of Speculative Philosophy created?

The Journal of Speculative Philosophy was created in 1867 by William T. Harris. It is one of the oldest philosophy journals in the United States, focusing on the publication of original work within the American philosophical tradition.


Which term refers to the uncertain nature of investiong?

tentative transferrable perpetual speculative