Javier has been thinking about purchasing a bond but is afraid that the bond will lose value. He has decided to hold money instead. This is known as the

Question

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The asset demand for money refers to the desire to hold money as a store of value instead of investing in bonds or other assets that might lose value. Javier's decision to hold money instead of purchasing a bond due to fear of the bond losing value illustrates this concept.

Javier Has Been Thinking About Purchasing a Bond but Is