Match the correct motive (precautionary, speculative, or transactions) for holding money to the following definitions.

definition
a. the stock of money people hold to pay unpredictable expenses
b. the stock of money people hold to take advantage of future changes in the prices of financial assets other than money
c. the stock of money people hold to pay everyday predictable expenses

identify the motive for holding money in the following scenario.

daesun moves to a smaller apartment. because of the lower monthly rent, he places a larger share of funds from his paycheck in a retirement fund and a smaller share in his savings account. this is an example of a decrease in daesun's (precautionary, speculative, or transactions) demand for money.

complete the following statement about the relationship between the interest rate and speculative balances.

as the interest rate falls, the opportunity cost of holding money (rises, falls) , and people (decrease,

Afinancial institution, the thriftem bank, is in the process of formulating its loan policy for the next quarter. a total of $12 million is allocated for that purpose. being a full-service facility, the bank is obligated to grant loans to different clientele. the following table provides the types of loans, the interest rate charged by the bank, and the possibility of bad debt as estimated from past experience.type of loaninterest rateprobability of bad debtpersonal.140.10car.130.07home.120.03farm.125.05commercial.100.02 bad debts are assumed unrecoverable and hence produce no interest revenue either. competition with other financial institutions in the area requires that the bank allocate at least 40% of the total funds to farm and commercial loans. to assist the housing industry in the region, home loans must equal at least 50% of the personal, car, and home loans. the bank also has a stated policy specifying that the overall ratio for bad debts on all loans may not exceed .04. formulate this problem as a linear program. define your variables clearly and write all the constraints explaining the significance of each.

You speak to a business owner that is taking in almost $2000 in revenue each month. the owner still says that they are having trouble keeping the doors open. how can that be possible? use the terms of revenue, expenses and profit/loss in your answer

Amano s preguntes cationing to come fonds and consumer good 8. why did the u.s. government use rationing for some foods and consumer goods during world war ii?