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Why does a mass of air get cooler as it rises over a mountain?
Speculative Motive
The intent to hold cash or other assets for the purpose of benefiting from future market movements.
Precautionary Motive
The desire to hold cash or liquid assets to guard against unforeseen future needs and emergencies.
Transaction Motive
The need for cash to meet immediate and anticipated demands for payment, a key reason for holding cash in business.
Speculative Motive
The intention to hold cash or other assets in anticipation of future market fluctuations to gain financial advantages.
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