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Answer to Question #240393 in Economics for Abo

Question #240393

Discuss why people would like to hold money


1
Expert's answer
2021-09-23T09:13:32-0400

One reason people hold their assets as money is so that they can purchase goods and services. People also hold money for speculative purposes. Bond prices fluctuate constantly. As a result, holders of bonds not only earn interest but experience gains or losses in the value of their assets.


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