The primary reason people hold money is

Question

Quizplus · Accepted Answer

The primary reason people hold money is to use it as a medium of exchange, meaning to facilitate transactions of goods and services. Money allows for easy and convenient exchange without the need for bartering and exchanging goods directly.

Option A is incorrect, as holding money in a less liquid form would actually decrease its usefulness as a medium of exchange.

Option C is incorrect as investment typically involves putting money into assets that will generate a return, such as stocks or real estate, rather than keeping it readily available for transactions.

Option D is incorrect as earning interest is a secondary benefit of holding money in certain accounts, but not necessarily the primary reason for holding it.

The Primary Reason People Hold Money Is