Investigation of Effective Factors on Precautionary Money Demand

One of the most important factor which affects the monetary policy is the knowledge of operation money demand function and its variables. In this way precautionary money demand is also very important. This research investigates the factors which affect precautionary money demand in the year 2015.
According to the base model of Sciortino and colleagues, this paper applied questioner form with 276 students of Zanjan University and using stratified random sampling method to collect data. Inspect individually and altogether, the relationship between personal income, personal risk and personal wealth variables with precautionary money demand. This study however employs a sensation seeking scale, similar to developed by Zuckerman to empirically evaluate personal risk. For the analysis used Pierson correlation coefficient, factor analysis, Levin test and regression.
The results show that, personal income and personal wealth have direct and significant relationship with precautionary money demand while personal risk has inverse and significant relevance. The results of Levin test presents there is no significant relationship between inflation and precautionary demand while there is significant one with interest rate.