JAMB Economics 2014 Objective — Question 27

Question 27 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2014 Objective paper, with the correct answer and a full explanation.

The precautionary demand for money is determined by

A. a general price level
B. the rate of interest
C. the level of savings
D. the level of incomeCorrect

Explanation

Precautionary demand for money is the demand for money for unforeseen contingencies. It is determined majorly by the level of income.

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