Final answer:
The notion of holding cash to potentially benefit from changes in the value of noncash assets is related to the reasons banks and individuals maintain liquidity. It involves considerations of reserve requirements, rate of return, risk, and liquidity but does not directly correspond to the phrases 'risk interest in money' or 'transactions demand for money'.
Step-by-step explanation:
The desire to keep assets in cash to take advantage of favorable changes in the value of noncash assets is related to the motives for holding money. Banks, for example, maintain reserves, which compose part of their assets held in cash or at the central bank and do not earn interest. This reserve requirement is mandated by the Federal Reserve as a precaution to ensure liquidity and stability in the banking system. These reserves can also be held in excess of the required amount, as they provide quick access to funds in case of unexpected needs or opportunities.
When considering the other half of the financial markets story, which involves households on the supply side, we observe that individuals also hold money for various reasons, weighing factors like expected rate of return, risk, and liquidity of investments. Notably, in a financial context, neither risk interest in money nor transactions demand for money directly refer to the strategy of retaining cash to capitalize on favorable movements in asset values. This strategy is more akin to speculative or precautionary motives for holding money, aiming to maximize potential returns and minimize risk exposure.