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Opportunity Cost
The price paid for not selecting the next most favorable choice when deciding.
Market Interest Rates
The prevailing rates at which borrowers can obtain loans and lenders can invest in debt securities, influenced by the overall demand and supply.
Precautionary Motive
The need to hold cash as a safety margin to act as a financial reserve.
Liquidity
The ease with which an asset can be converted into cash without affecting its market price.
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