Speculative example sentences

In a modern economy, people hold money broadly from two motives – transaction motive and speculative motive.Thus speculations regarding future movements in interest rate and bond prices give rise to the speculative demand for money.Thus they convert their bonds into money giving rise to a high speculative demand for money.Speculative risks arise due to changes in market conditions including fluctuations in demand and supply, changes in prices or changes in fashion and tastes of customers.The speculative money demand function is infinitely elastic here.This might amount to an even larger devaluation than would have been required before the speculative 'attack' on the domestic currency began.Business enterprises constantly face two types of risk: speculative and pure.Hence speculative demand for money is inversely related to the rate of interest.Another reason for the demand for foreign exchange is for speculative purposes.2 The Speculative Motive An individual may hold her wealth in the form of landed property, bullion, bonds, money etc.Everyone puts whatever wealth they acquire in the form of money and the speculative demand for money is infinite.Speculative risks involve both the possibility of gain as well as the possibility of loss.Total demand for money in an economy is, therefore, composed of transaction demand and speculative demand.