People's decision to hold money based on the comparison of the relative returns of money and nonmoney assets is known as

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The speculative motive refers to the decision to hold money based on the comparison of the relative returns of money and nonmoney assets. This means that people hold onto money because they believe that the returns from other investments may not be as high, or they may not want to take on the risk associated with investing in other assets. The precautionary motive refers to the decision to hold money for emergencies or unexpected expenses. The transactions motive refers to the decision to hold money to use for regular day-to-day transactions. The liquidity motive refers to the desire to have easily accessible funds on hand, regardless of the returns that may be available from other investments.

People's Decision to Hold Money Based on the Comparison of the Relative