Respuesta :
The public determines how much of the financial assets to hold as money based mainly on the interest rate.
What do you mean by financial assets?
Financial assets refer to liquid assets that derive value from any contractual rights. Financial assets help in the flow of money in the economy.
Bonds, stock, cash, and bank deposits are common examples of financial assets.
Therefore, the holding of financial assets as money depends upon the interest rate.
Learn more about Financial Assets here:
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