Assignment Task: Using Baulmol's inventory-theoretic approach to the demand for money, illustrate the stream of cash payments and the transactions demand for money and indicate the respective average money holdings of the following individuals from January to May
a. Pearl receives C8,000.00 monthly salary, doesn't want to deal with bank bureaucracy so cashes all her income at the beginning of the month.
b. Alexis receives C10,000.00 and takes advantage of her bank savings product by investing half of her salary at the beginning of the month and withdraws all by the 15th of the month.