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

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16y ago

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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 are the factors that determined or influences the transaction motive of money?

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.


Is there a Washington state real estate excise tax on a simple refinance transaction?

Yes there is. It is a Sales Tax by definition even though you are not selling.


What is the unsolicited trade definition?

Unsolicited trade refers to a transaction in which a buyer or seller initiates a trade without being prompted or solicited by the other party.


Definition of credit investigation?

A credit investigation is the process of investigating whether a person's credit has been compromised. This normally happens when a person reports and unauthorized transaction.

Related Questions

Motives of holding cash?

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


What is the definition of the word motive?

The definition of the word motive is to move or an inner drive impulse.


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 why?

adv. For what purpose, reason, or cause; with what intention, justification, or motive: Why is the door shut? Why do birds sing?


What is the definition of Point Of Sales?

The definition of Point of Sales, according to Wikipedia, is the location where a sale transaction is actually completed between a merchant and a buyer.


Definition of electric force?

The terminology used in the electrical field is EMF. It is Electro Motive Force, in other words voltage.


What is a by-motive?

A by-motive is a hidden motive.


Which of the followng does not describe a musical motive?

A musical motive is typically a short, distinctive melodic or rhythmic idea that serves as a building block for a composition. Any description that suggests a long, complex phrase or an entire musical theme would not accurately describe a musical motive. Additionally, terms that refer to harmonic progressions or lyrics would also not fit the definition of a musical motive.


What is the definition and nature of business transaction?

A business transaction refers to an operation or interaction made between the company and its clients. The supplier provides the goods and servicesÊtowards the consumers with an exchange of an income or profit.


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 is an motive?

An ulterior motive is a motive that they have beyond the main motive. They often do not show that they have this motive and it is often not good. The ulterior motive is almost always has it for their own good only.


What is a sentence with the word motive?

The police are trying to find the motive of the murder.Money is my main motive.