contestada

Match the correct motive for holding money to the following definitions.1. The stock of money people hold to pay unpredictable expenses2. The stock of money people hold to ensure liquidity within an investment portfolio.3. The stock of money people hold to pay everyday predictable expenses.Identify the motive for holding money in the following scenario: Robert moves to a smaller apartment. Because of the lower monthly rent, he places a larger share of funds from is paycheck in a retirement fund and a smaller share in his savings account. This is an example of a decrease in Robert's _____ demand for money.Complete the following statement about the relationship between the interest rate and financial assets in the form of money.As the interest ate falls, the opportunity cost of holding money ____, and people ____ their financial assets in the form of money.

Respuesta :

TomShelby

Answer:

(A)This is an example of a decrease in Robert's DECREASE demand for money

(B)As the interest ate falls, the opportunity cost of holding money DECREASE, and people DECREASE their financial assets in the form of money.

Explanation:

(A)

The Demand decrease because their currency requirement for predictalbe expenses decrease, his rent is lower. He can now invest something extra in his investment.

(B)

If the rate decrease, the cost of having money decrease, because the opoprtunity of having the currency in the bank yielding an interest gives lower return. This make people leave their currency assets and move into others which a better return

Otras preguntas