People forgo interest and hold money:?

Question

A) because they are required to

B) to reduce their transactions cost

C) there are no substitutes for money

D) because of all of the above

Answer 1

B is your best answer, you forego interest to reduce cost so you may hold onto your money.

A no one is required to in the sense, you can spend all you want.

C there are great subsititutes for money, such as gold, silver, platinum. rare antiquites/paintings. Some things ave high value in money and only increase. i.e. I will give you my 100 dollars if you give me your original Monet...see the point.