Practice mode Money, Interest Rates And Output

If I keep some money available in case I come across a bargain, which kind of money demand is this?

Correct answer B. Precautionary demand for money

Explanation

Precautionary demand is money held to meet unforeseen needs or opportunities, such as an emergency or an unexpected bargain, rather than planned purchases.

Report a problem

Answer checked 11 October 2026 How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

If I keep some money available in case I come across a bargain, which kind of money demand is this?

Discussion

Have a question about this answer? Cancel reply

If I keep some money available in case I come across a bargain, which kind of money demand is this?

More Money, Interest Rates And Output questions

Other things being equal, what happens to the quantity of real money balances held when interest rates rise?

What kind of measure of money is M4, and which institutions’ deposits does it include?

When a central bank buys financial securities on the open market to expand the monetary base, what is this an example of?

Central banks prefer to fix which variable and accept the resulting value of which other variable?

Discussion

Have a question about this answer? Cancel reply