Economics · Monetary Economics

Match the components of money demand (List I) with their determinants (List II): List I: (A) Transactions demand (B) Precautionary demand (C) Speculative demand List II: (I) Rate of interest - inverse (II) Level of income - positive (III) Level of income - positive Which matching is correct?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1A-II, B-I, C-III
2A-III, B-I, C-II
3A-I, B-II, C-III
4A-II, B-III, C-I✓

Correct answer

A-II, B-III, C-I

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Match the components of money demand (List I) with their determinants (List II): List I: (A) Transactions demand (B) Precautionary demand (C) Speculative demand List II: (I) Rate of interest - inverse (II) Level of income - positive (III) Level of income - positive Which matching is correct?

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Match the components of money demand (List I) with their determinants (List II): List I: (A) Transactions demand (B) Precautionary demand (C) Speculative demand List II: (I) Rate of interest - inverse (II) Level of income - positive (III) Level of income - positive Which matching is correct?

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