Asset Demand.

In addition to its use for transactions needs. what is money’s role as a store of value? This crucial question is addressed by confidant which ‘analyzes how investors should invest , their funds to attain their adjectives in the best Possible manner. We discuss the fundamentals of finance in the last section of this chapter and will sum Dari here only the major Ont concerning money.

In general, a well-constructed: portfolio (or combination of assets) will contain low-risk investments as well as riskier ventures, But it is not generally advisable to hold MI (currency or checking deposits) as (me of these nest eggs. The reason is that other assets (such as government’ securities) are just as safe  as MI and have higher interest rates. In the language of finance, narrow money is a -dominated” asset be cause other assets are equally safe but have his her yields. However, it might be sensible to hold your assets in M-z (say, in savings accounts) because these are high-yielding safe assets.

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