Transactions motive

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Transactions motive

A desire to hold cash in order to conduct cash-based transactions.

Transactions Motive

The desire of an economic actor to maintain sufficient funds in a bank account in order to write checks on that account for daily needs and wants. A person with higher income has a greater transactions motive than a person with lower income; that is, that person wants to have more money in order to spend more. In Keynesian economics, the transactions motive is one of three reasons persons demand liquidity. See also: Liquidity preference, precautionary motive, speculative motive.
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This paper argues that currency substitution refers to a country's residents for the transaction motive, precautionary motive, portfolio motive (i.
The transaction motive is the main reason of cash holding [6].
The transaction motive for holding cash is probably best expressed by using a narrow definition of consumption.
Thus, both the transaction motive and the financing motive appear to be economically significant
The transaction motive stems from the demand that a firm desires to use a certain amount of cash to satisfy the basic routine demand of cash outflow exactly (Miller and Orr, 1966).
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