Changes in the rate of interest affect the amount of money held for
A)transaction motive
B)precautionary motive
C)speculative motive
D)normal motive

Name: Changes in the rate of interest affect the amount of money held for A)transaction motive B)precautionary motive C)speculative motive D)normal motive
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Question

Quizplus · Accepted Answer

The speculative motive for holding money is influenced by interest rates, as people may choose to hold money or invest in interest-bearing assets based on expected returns.

Changes in the Rate of Interest Affect the Amount of Money