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Answer to Question #76169 in Macroeconomics for dart

Question #76169
8. There are several motives for holding assets in the form of money. What are they? Provide an example of each.
Expert's answer
1) Transaction motive:
Money for everyday transactions
2) Precautionary motive:
Money for unexpected payment
3) Speculative motive:
If the firm feels the prices of raw material are likely to fall in the future, it will hold cash and wait till the prices actually fall.

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