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
A
Economics
You might also like to view...
Tools and equipments used in production are:
a. natural resources. b. entrepreneurial resources. c. human capital. d. capital resources. e. labor resources.
Economics
In cases of extreme annual inflation, the breakdown of the monetary system forces people to waste valuable time engaging in bartering
a. True b. False
Economics