answersLogoWhite

0

The transaction motive for holding money is primarily influenced by the need for liquidity to facilitate everyday purchases and expenses. Factors include the frequency of transactions, income stability, and the overall level of prices in the economy. Additionally, individual preferences for consumption and the availability of credit can also impact how much money people choose to hold for transactions. Economic conditions, such as inflation and interest rates, further shape these motives by affecting purchasing power and the opportunity cost of holding cash.

User Avatar

AnswerBot

3mo ago

What else can I help you with?

Related Questions

Motives of holding cash?

1 - Transaction motive 2 - Precautionary motive 3 - Speculative motive


What are the three motives of holding money?

The three primary motives for holding money are the transaction motive, precautionary motive, and speculative motive. The transaction motive refers to the need for money to facilitate everyday purchases and expenses. The precautionary motive involves holding money as a safeguard against unexpected events or emergencies. Lastly, the speculative motive involves holding money to take advantage of potential investment opportunities or to benefit from changes in interest rates or asset prices.


What is the definition of Transaction motive?

A desire to hold cash in order to conduct cash-based transactions.


Motive is defined as an impulse or physiological need acting as incitement to action?

That's correct. Motive is a reason for doing something, often based on a need or desire that prompts a person to act in a certain way. It can be driven by a variety of factors such as biological, psychological, or social influences.


What are the motives for holding money keynes view?

John Maynard Keynes identified three primary motives for holding money: the transaction motive, the precautionary motive, and the speculative motive. The transaction motive refers to the need for money to facilitate everyday purchases and expenses. The precautionary motive involves holding money for unexpected expenses or emergencies, while the speculative motive pertains to holding cash to take advantage of potential investment opportunities when market conditions are favorable. Together, these motives explain why individuals and businesses choose to keep liquid assets instead of investing them all.


If an author let's you infer why a character does something the author has helped you determined the characters?

motive


What is the motive of a person?

A person's motive refers to the underlying reasons or driving forces behind their actions and decisions. It can be influenced by various factors, including personal desires, beliefs, emotions, social influences, and past experiences. Understanding someone's motive often involves analyzing their goals and the context of their behavior, which can reveal deeper insights into their character and intentions. Ultimately, motives can vary widely from person to person and situation to situation.


What is security motive?

Security motive refers to the instinctive need for individuals to feel safe and protected. It drives people to seek out stable environments and resources to guard against potential threats and dangers. This motive influences various aspects of human behavior, from decision-making to relationships.


What factors prevents private companies from deciding to produce public goods?

The profit motive


What is a by-motive?

A by-motive is a hidden motive.


What are the main motives for holding money?

The main motives for holding money are transactions, precaution, and speculation. The transaction motive relates to the need for money to facilitate everyday purchases and expenses. The precautionary motive involves holding cash for unexpected expenses or emergencies. Finally, the speculative motive refers to retaining money to take advantage of potential investment opportunities or to avoid losses in uncertain market conditions.


What motive has the man for murdering mrs oakentubb?

It is unclear what the motive of the man for murdering Mrs. Oakentubb is without more information about their relationship, circumstances, or any potential conflicts between them. Multiple factors could contribute to motive, such as jealousy, financial gain, revenge, or other personal motivations.