The Speculative Demand for Money May Not Exist Because

question 10

Multiple Choice

The speculative demand for money may not exist because

• A)banks now pay interest on some types of checkable deposits.
• B)there are alternative riskless assets paying higher returns than the return on money.
• C)the transactions demand can be shown to depend on interest rates.
• D)government regulations have eliminated risk in the financial markets.

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