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WAEC Economics 2005 Question 30

Question 30

Money and Inflation

The term demand for money means

  1. A.desire to borrow money from people
  2. B.desire of a individual to invest all his money in projects
  3. C.willingness of people to hold money
  4. D.willingness of people to keep all their resources in assets.
Show the answer and explanation

Answer: C (willingness of people to hold money)

Explanation

Demand for money is the desire to hold wealth in the form of cash (liquidity preference).