Asked by Morgan Beasley on Jul 18, 2024
Verified
The speculative motive for holding money is
A) the desire to hold money to undertake unexpected transactions.
B) the desire to hold money instead of other assets in anticipation of changes in economic conditions.
C) the desire to hold silver instead of gold.
D) the desire to hold money to complete purchases of goods and services.
Speculative Motive
The desire to hold cash or assets in anticipation of making gains based on future price movements.
Economic Conditions
The state of a country's economy, including factors like unemployment, inflation, and GDP growth.
- Appreciate the diverse motivations for possessing money and how they affect decisions at both the individual and economic level.
Verified Answer
AO
Alondra OrozcoJul 18, 2024
Final Answer :
B
Explanation :
The speculative motive for holding money is the desire to hold money instead of other assets in anticipation of changes in economic conditions. This includes holding money to take advantage of investment opportunities, to avoid losses in other financial instruments, or to speculate on future price movements. The other options (A, C, and D) relate to the transactionary, store of value, and precautionary motives for holding money.
Learning Objectives
- Appreciate the diverse motivations for possessing money and how they affect decisions at both the individual and economic level.