Question

Identify the key factors that influence the quantity of money that people desire to hold.

Short answer

key factors are precautionary, transaction, and speculative motives.

Step-by-step solution

introduction

The goal to accomplish a financial addition in an undertaking, exchange, or material undertaking.

explanation

The key factors that influence the quantity of money that people desire to hold are-

Precautionary motive-It is connected with protecting what's to come.

Transaction motive- It is with respect to everyday exchanges of offer and acquisition of labour and products.

Speculative motive- It is connected with the future expectations in regards to incrementing or lessening costs, the adjustment of loan fees, the expansion rate, and so on.