The speculative demand for money is inversely related to the
ECONOMICS
JAMB 2013
The speculative demand for money is inversely related to the
- A. interest rate
- B. level of income
- C. exchange rate
- D. inflation rate
Correct Answer: A. interest rate
Explanation
The speculative demand for money is simply a need for money for investment purposes, which is indirectly influenced by interest rates. When the rates of interest is high, people would most likely want to invest their money so as to get a high return on investment
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *