The _________________ relates to the desire of the people to hold cash in order to take advantage of market movements regarding the future changes in the price of bonds and securities in the capital market.

speculative motive

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precautionary motive

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demand motive

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transaction motive

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Solution

The correct option is B speculative motive
The speculative motive relates to the motive of the public to hold cash in their hand in order to take advantages of the market actions and movement in the future where they can influence the future change in the price of bonds and securities in the capital market.

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Similar questions

The speculative motive relates to the desire of the people to hold cash in order to take advantage of market movements regarding the future changes in the price of bonds and securities in the capital market.

The transaction motive relates to the desire of the people to hold cash for the future transactions.

Q. A company which desires to list its securities in a stock exchange, should offer at least _____ percent of its issued capital for public subscription.

Q. Which of the following is not a motive to hold cash?

Q. Arrange the different parts in the correct sequence to form a meaningful sentence/paragraph.
P : When the future date arrives, the bear expects
to buy in at a lower price to deliver the stock
that had been sold under the future contract
at a higher price.
Q : A market in which prices are falling or are
expected to fall is called by economists a bear
market.
R : Likewise, the term bear can be applied to a
person who expects stock prices to fall and
sells stock that he or she does not have for
delivery at a future date.
S : It is a designation commonly used in securities
markets and commodity markets and is the
opposite of a bull market.

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