A depository institution creates liquidity and pools risk

The transactions demand for holding money is when people hold money:

a. instead of near money. b. to transact purchases they expect to make. c. as insurance against unexpected expenses. d. to speculate in the stock market. e. to take advantage of changes in interest rates.

In what year was the Federal Reserve System created?

a. 1790 b. 1861 c. 1879 d. 1913 e. 1935