The Fact That in Addition to Being a Medium of Exchange

question 91

Multiple Choice

The fact that in addition to being a medium of exchange, money serves as a store of value means that

• A)movements in the interest rate should not affect the demand for money.
• B)movements in the price level should not affect the demand for money.
• C)money competes with other assets in the portfolios of businesses and households.
• D)the demand for real balances should increase more than proportionately with increases in real income.

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Definitions:

Embryo

The early developmental stage of plants and animals, during which the organism is in its earliest form after fertilization.

Sexual Maturation

The process of achieving reproductive ability and development of secondary sexual characteristics.

Pubescence

The condition of having covered or partially covered surfaces in fine hairs or fuzz, often observed on plants or young animals.

Ovarian Follicle

In animals, oocyte and surrounding follicle cells.