There are several motives for holding assets in the form of ...

[beccaep]

There are several motives for holding assets in the form of money. What are they? Provide an example of each.

Question 2

For most Third World countries, the key source of capital accumulation is _____.
 a. internal debt
  b. foreign direct investment
  c. domestic business spending
  d. domestic saving
  e. foreign aid

[Fayaz00962]

Answer to Question 1

There are three main reasons for holding money:
a . transaction purposes for facilitating exchange - groceries, utilities, clothing
b. precautionary purposes for unexpected expenses - medical emergencies; home repairs; auto repairs
c. asset purposes for easy conversion into goods and services (liquidity) - money market account balances to be used later for long-term investments

Answer to Question 2

b

[beccaep]

TYSM

[tkempin]

Thanks for the timely response, appreciate it