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The precautionary demand for money is determined by

Economics
JAMB 2014
The precautionary demand for money is determined by
  • A. the rate of interest
  • B. the level of savings
  • C. the level of income
  • D. general price level
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Correct Answer: Option A
Explanation
The precautionary demand is dependent on the size of income, the availability of credit, and the rate of interest.
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