According to the Classical Quantity Theory, demand for money primarily depends on:

CA Foundation · Business Economics · MTP · May 2026
According to the Classical Quantity Theory, demand for money primarily depends on:
(A) A. Interest rate
(B) B. Price level and transactions
(C) C. Wealth distribution
(D) D. Speculative motives

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Price level and transactions

Topics: Money Market

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