The demand for money which arises from not wanting to invest in stocks and bonds fearing capital loss is called:

Liquidity demand

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Transaction demand

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Speculative demand

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Precautionary demand

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Solution

The correct option is C
Speculative demand

The demand for money which arises from not wanting to invest in stocks and bonds fearing capital loss is called speculative demand.

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Similar questions

Explain speculative and transaction demands for money.

How is income related to precautionary demand for money?

List factors that affect precautionary demand for money.

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