The demand for money to cover unexpected expenditures and to meet emergencies is known as
A) the transactions demand for money.
B) the precautionary demand for money.
C) the asset demand for money.
D) the terminal demand for money.
B
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Credit cards are considered to be part of the money supply.
Answer the following statement true (T) or false (F)
Behavioral economics deals with
A. only theories without justification from empirical evidence. B. bounded rationality. C. unbounded willpower. D. the assumption that people are always selfish.
The U.S. dollar is called a ________ because it is often used as an intermediary to accomplish trading between two other currencies.
A. common currency B. main currency C. vehicle currency D. primary currency
Which of the following is a key difference between the dictator game and the ultimatum game?
A. The dictator game is played with real money; the ultimatum game is played with hypothetical money. B. In the dictator game, one person has total control over the split; in the ultimatum game, both players have to agree to the split. C. Results of dictator game experiments reveal that people don't care about fairness; results of the ultimatum game indicate that they do care. D. There is no difference between them; they are simply different names for the same game.