JAMB Economics 2020 Objective — Question 28
Question 28 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2020 Objective paper, with the correct answer and a full explanation.
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If Mr. K obtains a N50,000 loan from a bank for the purpose of providing household needs, the demand for money is said to be
- A. transactionary and speculative
- B. transactionaryCorrect
- C. speculative
- D. precautionary and speculative
Explanation
A loan taken specifically to cover everyday household needs reflects the transactionary demand for money.
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