The speculative demand for holding money is when people hold money:

a. instead of near money.
b. to transact purchases they expect to make.
c. as insurance against unexpected needs.
d. to speculate in the stock market.
e. to take advantage of changes in interest rates.

e

Economics

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Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. What is the price of chicken?

A) $0.80/lb B) $1.25/lb C) $4/lb D) $5/lb

Economics

If a bank holds $2000 in demand deposits and the required reserve ratio is 0.15, how much can the bank lend out?

a. $2,000 b. $1,700 c. $300 d. $150 e. $2,300

Economics