Options: A. Inflationary
B. Transactional
C. Speculative
D. Precautionary
Answer:D. Precautionary
Explanation: Precautionary demand is a type of demand where investors take adequate steps to prepare for possible economic threats expected in the future. With precautionary measures a person will either make adequate purchases in the case where the threat is concerning the rise in general prices of goods or make withdrawals from the bank in the case possible bank threats etc.
