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Economists Say That Money Is a Store of Value

question 5

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Economists say that money is a store of value. since there are other assets that are a more desirable store of money, why do people hold money at all?


Definitions:

Rate Anticipation Swap

A financial derivative strategy used by investors who anticipate changes in interest rates, involving swapping one set of cash flows for another.

Bond Swap

A strategy that involves selling one bond and using the proceeds to purchase another bond, typically to improve yield or extend maturity.

Yield To Maturity

The total return anticipated on a bond if held until it matures, including all interest payments and the repayment of principal.

Bond's Value

The present worth of a bond's future interest payments and its repayment of principal at maturity, adjusted for current market interest rates.

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