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Briefly explain the factors that affect the amount of money held for the transactions motive

      

Briefly explain the factors that affect the amount of money held for the transactions motive

  

Answers


Dana
The level of income: the higher the income, the higher the amount of money held for transactions motive holding all other factors constant
Spending habits of the consumer: the spending habits will determine the amount of money held for transactions motive
Time interval in between income receipts: the shorter the pay period, the less income required for transactions motive, holding other factors constant. As the payment period becomes longer, people will need to hold more money for transactions purpose

Dana05 answered the question on August 14, 2019 at 07:18


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