Demand for money and the supply of money - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 2014

The precautionary demand for money is determined by

A. The rate of interest
B. The level of savings
C. The level of income
D. General price level

Question 7:

• JAMB 1982

Demand for money for speculative purposes means?

A. Buying goods and services whose prices have risen
B. Keeping money for unforseen expenditure
C. Buying financial assets because of possible gains
D. Buying real estate
E. Keeping money for a rainy day

Question 8:

• JAMB 1984

Lord Keynes identified three motives for holding money, that is, keeping one’s resources in liquid form instead of in some form of investment. the motive which relates to making provision for the ‘rainy day’ is known as?

A. Speculative motive
B. Precautionary motive
C. Transactions motive
D. Investment motives
E. Rainy day motive

Question 9:

• JAMB 1984

If a person demands money for buying and selling securities. It is referred as demanding money for

A. Transaction purposes
B. Speculative purposes
C. Precautionary purposes
D. Meeting the educational expenses of the children
E. Carrying out gambling activities

Question 10:

• JAMB 1987

In the keynesian model?

A. The demand for money is inversely related to the rate of interest
B. Investment is directly related to the rate of interest
C. Investment is not related to the rate of interest to the rate of interest
D. The demand for money is directly related to the rate of interest