Money should be difficult to counterfeit for it to act as a liberating
medium of exchange.
Economics MCQ - Economics Section 2
The increase in money from an additional deposit in the banking system
= new deposit / reserve requirement = $100 / 0.08 = 1250.
Speculative demand for money relates to the demand to hold speculative
money balances based on the potential opportunities or risks that are
inherent in other financial instruments.
If the expected return on other assets falls, then the opportunity cost of
holding money also falls and can, in turn, lead to an increase in the
speculative demand for money.
