Asset Motive

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Asset Motive

The demand for money over and above what one needs to live in order to make investments. That is, the asset motive describes the desire to have money in order to make more money. It may be divided into the portfolio motive and speculative motive. The portfolio motive is the desire for money to invest directly, while the speculative motive is the demand to place money aside (outside of one's portfolio) to make a better investment should the opportunity arise.

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