One of the major determinants of the demand for money is:

Name: One of the major determinants of the demand for money is:
Brand: Quizplus
Rating: 4.8 (57 reviews)

Question

Quizplus · Accepted Answer

Interest rates are a major determinant of the demand for money because they influence the cost of borrowing money and the return on saving money. Lower interest rates make borrowing more attractive and saving less attractive, increasing the demand for money. Conversely, higher interest rates make saving more attractive and borrowing less attractive, reducing the demand for money.

One of the Major Determinants of the Demand for Money