A Research On The Demand For Money

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With the demand for money there are several behaviors in which people hold their money. There are a number of ways for people to invest and increase their wealth. This is a comparison between cash gaining interest in a checking or savings account at a bank or investing in stocks, bonds, and property. There are benefits for each individual for the amount of income they have, how much of that income they expend, and how much is available for savings or investment. Their approach will depend on the rate of return they are looking for, the risks they are willing to take, and the amount of time they are willing to invest their money. The research on the demand for money, there are three articles that become valuable resources. Jerry L…show more content…
In the real estate market, the investor is concerned with the inflation and interest rates that are going to affect the end profit of this investment. Each investor wants some level of confidence that their money will produce a positive return despite how the factors affect the investment. In the housing market, the results can be either positive or negative based on the economy and the GDP. The overall Investment Performance could provide the investor with significant wealth or they may lose the money they have invested. This is related to the changes that occur in the Real Estate Investment Trust (REITs), if the market reaches a point where more money is being invested in other avenues within the market. In, USING INTERNAL RATE OF RETURN TO SCORE INVESTMENTS: “AND THE WINNER IS…, written by Eric B. Storey, he focuses on the internal rate of return as a financial metric. The rates that were provided were able to show the overall impact of these returns for real estate and certificates of deposit. Given that rate can change, due to the fluctuations in the capital market this poses a risk to the investor. Consumers will always have a need for a product and no matter what the form of currency, the product will not change in value. The company will be producing the product and selling it to keep their revenue flowing. In
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