If Mr Wale took a loan for the purpose of investment, the...
If Mr Wale took a loan for the purpose of investment, the demand for money is________________?
Precautionary motive
Transactionary and Precautionary motive
Speculative motive
Speculative and Transactionary motives
Correct answer is C
Speculative motive: A desire to hold cash in order to be poised to exploit any attractive investment opportunity requiring a cash expenditure that might arise.
* We hold cash rather than other assets whose values are falling.
* We hold on to cash to be able to buy them when their prices actually fall.
* So this is money held to play the market.
* It is money held to buy (or sell) bonds, depending on one's expectations of future interest rates.
Localization of industry is encouraged because of ...
Which of the following determinants of supply cannot be predicted easily? ...
The deregulation of the petroleum sector in Nigeria will bring about ...
What is the population of the matured students? ...
Which of the following will occur when the market is unstable? ...
Monopoly can best be described as a market in which ...
Optimum population enables an economy to attain the highest level of ...
Which of the following is a major determinant of price elasticity of demand? ...
The active intervention of the central authorities in the management of a country's economy rest...