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  2. People hoard extra cash for various reasons, including1234:
    • Fear: Fear of going broke, not being able to access money, or being taken advantage of.
    • Precautionary motive: Building rainy-day funds for emergencies.
    • Desire to minimize taxes: Holding cash to avoid tax implications.
    Learn more:
    Most often, the cause of financial hoarding boils down to fear — fear of going broke, fear of not being able to access money, fear of being taken advantage of, fear of technology and so on.
    www.kiplinger.com/retirement/what-is-financial-hoa…
    Why are consumers hoarding their cash? With rising employment, more Americans are earning a steady paycheck, but much of that money is going both unspent and not invested -- leaving banks brimming with cash.
    www.cbsnews.com/video/why-are-consumers-hoar…
    A common explanation for the increase in cash-holding has been the increasing importance of rainy-day funds, particularly for firms whose valuations are subjective, and who might struggle to access capital quickly when the need—or opportunity—arises. But there is also another possibility: a desire to minimize taxes.
    insight.kellogg.northwestern.edu/article/companies …
    Cash hoarding is defined as cash lying idle, not being used for payments. Therefore this could be driven by the opportunity cost, precautionary motive, or other motives. As the transaction motive can be proxied by nominal gross domestic product (GDP), we focused on cash in circulation as a percentage of nominal GDP.
    www.weforum.org/agenda/2019/10/the-cash-hoardi…
     
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  5. WEB1 day ago · On one hand, cash hoarding erodes the effectiveness of monetary policy by weakening the money creation process. On the other hand, greater cash issuance increases a central bank’s income …

  6. WEBApr 8, 2020 · During the ongoing coronavirus pandemic, Americans have been hoarding hand sanitizer, ammunition, toilet paper, and even cash! …

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