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JAMB Economics 1984 Question 35

Question 35

Money and Inflation

If a person demands money for buying and selling securities, it is referred to as demanding money for

  1. A.transaction purposes
  2. B.speculative purposes
  3. C.precautionary purposes
  4. D.meeting the educational expenses of children
  5. E.carrying out gambling activities.
Show the answer and explanation

Answer: B (speculative purposes)

Explanation

Holding money to take advantage of changes in bond and security prices is the speculative motive.