Money is at least physical, no matter how poorly backed financially. The physical possession provides a feeling of value and security.
When the interest rates are high, people would prefer to save than holding money. That means money supply in the economy is decreased. Whereas when the interest rates are low people prefer to hold money and spend, means increased money supply in the economy.
Savings provide a cushion for times when we need money for necessities, trips, unexpected bills, job loss, retirement, helping others in their times of need, save a down payment for a home, etc.
Cause people need money to buy stuff and t' pay bills so they either rob a bank or steal from another. More prefer to rob a bank and bring a gun. Who walks into a bank with a sword?
People knew and were confident that the items being exchanged would hold/keep their value as time went on. They did not use money because they were not sure that it would hold its value, and thats why the barter system was used by backcountry people.
It would decrease, if there are lower prices, than people would naturally demand less of it. This is the quantity theory of money Money Demand= Price level*Income/Velocity of Money, what is important here is that Price level is in the numerator, so when it decreases the total quantity of money decreases as well.
When the interest rates are high, people would prefer to save than holding money. That means money supply in the economy is decreased. Whereas when the interest rates are low people prefer to hold money and spend, means increased money supply in the economy.
When the interest rates are high, people would prefer to save than holding money. That means money supply in the economy is decreased. Whereas when the interest rates are low people prefer to hold money and spend, means increased money supply in the economy.
Well, some people prefer cold than hot. Some people prefer hot than cold.
because they have enough money
A lot of people prefer watching television to going out. This is because watching television is more convenient, and doesn't involve spending a lot of money.
Walking - it is free Cycling costs money - to buy the cycle for a start
Many people believe the things they hold dear can only be acquired with money, therefore money is where the're enthusiasm is concentrated. (just my opinion.)
because the people of the Sundarbans prefer to stick to tradition
They are an investment. In time they will get their money back, with some profit.
Many people manage their money by drawing up a budget of income and expenditure. Some people prefer to budget on a monthly basis while others would rather manage their finances weekly.
1. Borrowers do something with the money they borrow 2. People do not withdraw cash. 3. Banks do not let reserves sit idle To the extent that people prefer to hold cash, the actual money multiplier will be smaller than the simple money multiplier because cash withdrawals reduce reserves in the banking system. Reduced reserves give banks less ability to make loans or buy bonds.
you count the people who prefer chicken and the people who prefer past and the ratio will be chicken:pasta, chicken to pasta or chicken/pasta