Speculative demand example sentences

Total demand for money in an economy is, therefore, composed of transaction demand and speculative demand.Thus speculations regarding future movements in interest rate and bond prices give rise to the speculative demand for money.Everyone puts whatever wealth they acquire in the form of money and the speculative demand for money is infinite.Hence speculative demand for money is inversely related to the rate of interest.Thus they convert their bonds into money giving rise to a high speculative demand for money.