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When people hold a specific quantity of money during a specific time period because they expect to use the

  When people hold a specific quantity of money during a specific time period because
                            they expect to use the money to buy a specific value (price times quantity) of goods, we
                            refer to that money holding as satisfying their

a.precautionary demand for money

b.liquidity demand for money

c.saving demand for money

d.speculative demand for money

e.transactions demand for money

122.              Keynesians, monetarists, and classical economists all agree that the transactions demand
                            for money is the demand for money by households for

a.precautionary purposes

b.spending purposes

c.liquidity purposes

d.saving purposes

e.investment purposes

123.              Keynesians, monetarists, and classical economists all agree that the transactions demand
                            for money is money being used as a

a.measure of value

b.store of value

c.standard of deferred payments

d.medium of exchange

e.medium of barter

124.              According to Keynesians, if the money supply is fixed and households expand their
                            purchases of consumer goods, the velocity of money

a.remains unchanged but the price level falls

b.falls

c.rises

d.falls and the price level rises

e.remains unchanged but the price level rises

125.              Economists have long pondered the reasons why people hold money. Some reasons seem
                            to be more important than others. Perhaps not among the most important but still a reason
                            why people hold money is for emergency purposes (the idea of having money available
                            for that “rainy day”). Economist refer to that demand for money as

a.precautionary

b.emergency

c.speculative

d.transactions

e.temporary

126.              Economists have long pondered the reasons why people hold money. Some reasons seem
                            to be more important than others. Perhaps not among the most important but still a reason
                            why people demand money is the precautionary motive. This precautionary demand for
                            money refers to the demand

a.to satisfy everyday transactions

b.for investment purposes

c.for speculative purposes such as having money available to take advantage of stock
purchases

d.to protect against inflation

e.to cover unexpected events

127.              When people like yourself take extra (unbudgeted) money along on an extended trip,
                            economists classify this money as satisfying your

a.speculative motive

b.transactions motive

c.emergency motive

d.precautionary motive

e.inflationary motive

128.              When people like yourself hold money in the event that a good opportunity may arise,
                            such as the opportunity to purchase high interest-bearing assets, economists classify
                            this money as satisfying your

a.precautionary motive

b.transactions motive

c.speculative motive

d.liquidity motive

e.investment motive

129.              The speculative demand for money relates the quantity of money demanded (or held) to

a.the level of income

b.the interest rate

c.the price level

d.the investment opportunity

e.satisfy consumption needs

130.              When the interest rate increases, the quantity demanded of money held to satisfy your

a.speculative motive rises

b.precautionary motive rises

c.transactions motive falls

d.precautionary motive falls

e.speculative motive falls

Feb 11 2020 View more View Less

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