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Give and explain the three theories of money demand

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Finance

Give and explain the three theories of money demand

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The following are the three theories of demand for money 1 Keynes theory of money demand The central theme for this theory has been the liquidity preference It is the immediate money in the form of cash which a person holds according to hisher needs There are the basically three motives for which a person keeps the cash with himselfherself and they are a Precautionary motive The people keeps money to fight any unexpected problems They hold because it may be possible that some situation in future will arise which will need lot of cash b Speculative motive We keep liquid money to get the    See Answer
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Give and explain the three theories of money demand

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