The demand for money that arises because holding money over short periods is less risky than holding stocks or bonds is called the

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The demand for money that arises because holding money over short periods is less risky than holding stocks or bonds is called the speculative demand for money. This demand is based on the opportunity cost of holding money versus investing in other assets that might earn a higher return, but also involve a higher level of risk. Speculative demand for money arises from the desire to hold cash or cash equivalents in order to take advantage of investment opportunities that may arise in the future.

The Demand for Money That Arises Because Holding Money Over