The stock of money people hold to take advantage of expected future changes in the price of bonds, stocks, or other nonmoney financial assets is the:
a. unit-of-account motive for holding money.
b. precautionary motive for holding money.
c. speculative motive for holding money.
d. transactions motive for holding money.
c
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When a Central Bank takes action to decrease the money supply and increase the interest rate, it is following:
a. a loose monetary policy. b. a contractionary monetary policy. c. a expansionary monetary policy. d. a quantitative easing policy.
In the modern U.S. economy, most transactions are made with
a. cash. b. gold and silver. c. credit cards. d. checking deposits.
It is efficient not to alter the amount of pollution produced by the market.
Answer the following statement true (T) or false (F)
Which of the following characteristics of the monopolistically competitive and the perfectly competitive market will cause the firm to earn zero profits in the long run?
A. no barriers to entry B. many buyers C. price taker D. homogeneous product