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The demand for money to take advantage of changes in bond prices is the

Economics
WAEC 2011

The demand for money to take advantage of changes in bond prices is the

  • A. unforeseen motive
  • B. transaction motive
  • C. speculative motive
  • D. precautionary motive
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Correct Answer: Option C
Explanation

Speculative demand for money refers to a desire to hold cash/money in order to be ready to take advantage of any attractive investment opportunity requiring a cash expenditure. Example holding money so as to invest in shares or bonds when opportunity arises.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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