Which two of the following require liquidity but do not necessarily require cash reserves? Transaction and...
Which two of the following require liquidity but do not necessarily require cash reserves?
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Transaction and precautionary motives
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Compensating balance requirement and precautionary motive
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Compensating balance requirement and transaction motive
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Speculative and transaction motives
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Precautionary and speculative motives
Homework Answers
Precautionary and speculative motives.
Precautionary and speculative motives require liquidity but do not necessarily require cash reserves. Precautionary motive arises to meet any unforeseen contingencies and the speculative motive arises from uncertainties about the money value of other assets that an individual can hold.
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Which two of the following require liquidity but do not
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