Economy, asked by thesiddu08, 3 months ago

Write a brief note on Transactionary and Speculative motives of demand for money.

Answers

Answered by diyabhana

Answer:

Types of demand for money. Transaction demand – money needed to buy goods – this is related to income. Precautionary demand – money needed for financial emergencies. Asset motive/speculative demand – when people wish to hold money rather than buy assets/bonds/risky investment.

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