The optimal average money holding is a negative function of which of the following?

CA Foundation · Business Economics · PYQS · January 2026
The optimal average money holding is a negative function of which of the following?
(A) A. Income
(B) B. Nominal interest rate
(C) C. Transaction cost
(D) D. Price level

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Nominal interest rate

Topics: Money Market

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