IF BOND PRICES FALL,WILL INDIVIDUALS WANT TO HOLD MORE OR LESS MONEY? EXPLAIN YOUR ANSWER.THIS IS A QUESTION FROM A TEXTBOOK.(PLEASE WRITE IN A...

When bond prices fall, people will want to buy more
bonds.  This means that they will not want to hold so much money in cash or checkable
deposits.  This means that the quantity demanded of money goes
down.

The reason for this is that falling bond prices mean
that interest rates are going up.  If interest rates are going up, that means that
wealth held in interest bearing things like bonds will earn more than it would if
interest rates were low.  This means that the opportunity cost of holding money would be
high when interest rates are high.