[Solved] Speculative demand for cash is determined by -

McqMate

Q.	Speculative demand for cash is determined by -
A.	The rate of interest
B.	the level of income
C.	the general price level
D.	the market conditions
Answer» A. The rate of interest
Explanation: Speculative demand is the demand for financial assets, such as securities, money or foreign currency that is not dictated by real transactions such as trade, or financing. The assets demand for money is inversely related to the market interest rate. This is because at lower interest rate, more people will expect a rise in interest rate (or a fall in bond prices).

3.8k

0

Do you find this helpful?

32

View all MCQs in

Discussion

No comments yet

Related MCQs

The demand of a commodity is a direct demand but the demand of a factor of production is called a -
The demand for two or more commodities or factor of production that are used together so that a change in demand for one will be reflected in a change in demand for other e.g., cloth and thread is called
When there is a change in demand leading to a shift of the Demand Curve to the right, at the same price as before, the quantity demanded will -
When percentage change in demand for a commodity is less than percentage change in its price, then demand is said to be -
If the change in demand for a commodity is at a faster rate than change in the price of the commodity, the demand is -
Inwhich market structure is the demand curve of the market represented by the demand curve of the firm?
'Law of demand' implies that when there is excess demand for a commodity, then
Elasticity of demand is the degree of responsiveness of demand of a commodity to a -
Under flexible exchange rate system, the exchange rate is determined by -
Under hill cost pricing, price is determined -