This is the amount of money held to take advantage of profitable opportunities that may arise in the financial markets. The speculative motive views money as a store of value. People hold money for speculative motive due to uncertainty about the future rate of interest. A fall in interest rate leads to an increase in the speculations demand for money. Speculations motive is an inverse function of the interest rate.
Dana05 answered the question on August 14, 2019 at 07:20
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