three motives for holding money

Related BrainMass Solutions

• Principle motives for holding cash and near cash assets

  This explains the principle motives for holding cash and near cash assets.

• Primary motives for holding cash

  What are the two primary motives for holding cash?

• Demand for money

  The way in which these factors affect money demand is explained in terms of the three motives for demanding money, which is the transactions, the precautionary, and the speculative motives.

• Changes in aggregate demand

  At the same time, old people tend to spend less money and therefore, have less transaction motives for holding money, which will also lower the value of parameter k. These are all negative effects on money demand.

• Working Capital Management Questions

  The two principal reasons for holding cash are for transactions and compensating balances. The target cash balance is not equal to the sum of the holdings for each reason because the same money can often partially satisfy both motives.

• Discuss and describe the role of a financial manager

  What are the three primary motives for holding cash? Answer: The three primary motives of holding cash is: (i) Transactions motive (ii) Precautionary motive, and (iii) Speculative motive 6.

• Microsoft motives for accumulating and holding cash

  What are the business motives for holding cash in general? Of these motives, which one is most likely driving Microsoft's accumulation of cash? Explain your answer in detail. 2.

• Holding Cash

  Hence, the optimal cash target might not be obvious in spite of the identity of the cash held to satisfy the company's transactions and precautionary motives for holding cash.

• Aggressive and conservative strategy

  . ======================= Most businesses carry cash on their balance sheets, though the motives for holding cash vary widely across firms.