demand for money is for securing profits from knowing better than the market what the future will bring forth.
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Answer:
Definition: It is a tactic used by investors/ traders to hold cash so as to make the best use of any investment opportunity that arises later on.
Description: Keeping all money invested doesn't seem attractive all the time. Maintaining a fair amount of liquidity in one's portfolio is one of the top priorities for an investor. Generally, investors keep a fair amount of such cash with them so as to earn higher profits.
There may be chances of interest rates going up in future, thereby giving higher returns on investment. In such a situation, the cash kept aside by the investor equips him to exploit such an attractive investment opportunity. This is known as speculative motive.
Explanation:
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