Discuss the various motives for holding money. Is demand for money a f

Question

Discuss the various motives for holding money. Is demand for money a function of the level of income and the rate of interest?

22 Sep 2022

Answer :

Word Count : 324

Motives for Holding Cash

Majorly there are three motives for which the firm holds cash.

1 Transaction Motive: The transaction motive refers to the cash required by a firm to meet the day to day needs of its business operations. In an ordinary course of business, the firm requires cash to make the payments in ______ ______ ______ _______ ___ ______ ________.
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