If Mr Wale took a loan for the purpose of investment, the...
If Mr Wale took a loan for the purpose of investment, the demand for money is________________?
Precautionary motive
Transactionary and Precautionary motive
Speculative motive
Speculative and Transactionary motives
Correct answer is C
Speculative motive: A desire to hold cash in order to be poised to exploit any attractive investment opportunity requiring a cash expenditure that might arise.
* We hold cash rather than other assets whose values are falling.
* We hold on to cash to be able to buy them when their prices actually fall.
* So this is money held to play the market.
* It is money held to buy (or sell) bonds, depending on one's expectations of future interest rates.
The value of the multiplier depends on ...
From the graph above, the price elasticity of demand is ...
Which of the following is a condition necessary for a perfect market? ...
A typical corporate form of business organization is owned by ...
Given that Qd = 40-2P and Qs = 6P+24. Calculate the equilibrium price. ...
One disadvantages of direct taxes is that they ...