-The level of household/individual income:
The higher the amount of income the higher the amount of money that an individual would hold for transaction motive.
-The price level/cost of living
The higher the cost of living the higher the amount of money and individual would hold.
-The number of dependants an individual has /family size: Individual with a large family will keep large amount of money for transaction purpose.
- The possibility of getting credit:
The more difficult it is, the higher the amount an individual would hold for transacting propose.
-Lifestyle of an individual / psychological environment.
An individual with an expensive lifestyle or high income neighborhood will hold more money for transactions purpose.
-Pattern of payment /interval between payment
Weekly wage earner will need to hold less than a person who receives his salary monthly.
Kavungya answered the question on September 25, 2019 at 09:32
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September 25, 2019
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