Why Do Individuals Hold Money When It Does Not Provide

question 17

Multiple Choice

Why do individuals hold money when it does not provide the services that, say, a house does?

• A)Money is the most liquid asset.
• B)Money is the only form in which wealth may be held.
• C)Money increases in value faster than other assets.
• D)Money is useful in avoiding taxes on certain transactions.

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Definitions:

Transaction Fee

A charge assessed for processing a financial operation, such as a bank transfer, stock trade, or credit card transaction.

Commission Rate

The percentage or fee paid to an agent or company for facilitating a transaction, often used in sales, brokerage, and real estate transactions.

Full-Service Broker

A financial advisor who offers a broad range of investment services, advice, and research, typically at a higher cost than discount brokers.

Online Discount Broker

A platform that allows investors to buy and sell securities at lower commission rates than traditional brokers.