The speculative demand for holding money is when people hold money:
A) instead of near money.
B) to transact purchases they expect to make.
C) as insurance against unexpected needs.
D) to speculate in the stock market.
E) to take advantage of changes in interest rates.

Question

Quizplus · Accepted Answer

The speculative demand for money is related to holding money to take advantage of expected changes in interest rates or bond prices, rather than investing it immediately.

The Speculative Demand for Holding Money Is When People Hold