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Money Demand Quiz

Money Demand Quiz

Questions: 8 | Attempts: 10 | Last updated: Nov 12, 2025

Sample Question 1
What is the primary reason for the demand for money?

To purchase goods and services

To save for future investments

To hold as a store of value

To pay taxes

Sample Question 2
Which of the following factors does NOT affect the demand for money?

Interest rates

Income levels

Inflation rates

Government spending

Sample Question 3
According to the liquidity preference theory, the demand for money is inversely related to:

Income

Interest rates

Price levels

Transaction costs