Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › JNU › JNU SSS 2019 › Q25
1 markMacroeconomics › Demand for money and monetary theories › Keynesian liquidity preferenceModerateabout 1 min

JNU SSS 2019 Question 25: Demand for money and monetary theories

In the Keynesian macroeconomic system, speculative demand for money arises because of:

I. Uncertainty regarding future interest rates

II. Unexpected expenditures

III. To bridge the gap between income and eventual expenditure

IV. Relationship between changes in the interest rates and bond prices

Choose the correct option from those given below:

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Demand for money and monetary theories has come up 82 times in 7 exams since 2005.

What this question tests

This question is on Keynesian liquidity preference, part of Demand for money and monetary theories in Macroeconomics.

Why people hold money: the transactions, precautionary and speculative motives and the link to interest rates.

TestStop has 25 past-paper questions on this subtopic.

Practise Demand for money and monetary theoriesMore on Keynesian liquidity preference

Similar questions from other papers

  • CUET-PG 2026 · Q33Given below are two statements: Assertion A: The nominal interest rate can be misleading guide to cost of borrowing. Reason R: The real interest rate is nominal rate of…
  • GATE 2026 · Q33According to the theory of Keynesian Liquidity Preference, demand for money
  • IIT JAM 2026 · Q35In the context of Keynesian money demand, ceteris paribus, the real demand for money increases when
  • UGC-NET 2026 · Q6Which of the following proposition of demand for money in Keynesian theory has a distinct break with classical theory of demand for money?
  • CUET-PG 2025 · Q38The statement that "currency held in the hand yields no income" is given by

Question from the JNU SSS 2019 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.