The demand for money to take advantage of changes in bond prices is the

  • A unforeseen motive
  • B transaction motive
  • C speculative motive
  • D precautionary motive
waec 2011economics

The correct answer is C. speculative motive

Speculative demand for money refers to a desire to hold cash/money in order to be ready to take advantage of any attractive investment opportunity requiring a cash expenditure. Example holding money so as to invest in shares or bonds when opportunity arises.

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