State Whether the Following Illustrates the Speculative,precautionary or Transactions Motive

question 31

Essay

State whether the following illustrates the speculative,precautionary or transactions motive for holding money.
a.A bond broker holds cash for the possibility of buying a bond whose price is expected to rise.
b.John's mother tells him to keep $10 in his pocket any time he goes out in case he needs to put gas in the car.
c.As stock prices begin to tumble,investors sell stock and increase their cash holdings.
c.Julio withdraws $100 from the bank to buy vegetables at the local organic farm market.
d.Mary takes out $50 from the bank to buy lunches during the week.

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Definitions:

Independent Variables

Factors in a study or simulation that are altered or categorized to examine their impact on outcome variables.

Multiple Regression Model

A mathematical method that employs multiple explanatory factors to forecast the result of a dependent variable.

Increase

A rise in the size, amount, or degree of something.

Constant

A value that does not change in the context of a mathematical equation or statistical model.