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If Mr .K obtains a N50.000 loan from a bank for the purpo...

If Mr .K obtains a N50.000 loan from a bank for the purpose of providing household needs, the demand for money is said to be

A.

Transactionary

B.

Speculative

C.

Precautionary and speculative

D.

Transacttional and speculative

Correct answer is A

The transactionary motive of money is when people hold money for the purpose of meeting their daily needs and wants. It is simply the desire to hold money in order to finance transactions.