Saving Is an Example of

question 6

Multiple Choice

Saving is an example of

• A) exchanging capital for cash.
• B) exchanging scarce resources for unlimited resources.
• C) trading present benefits for future benefits.
• D) trading future benefits for present benefits.

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Definitions:

Payments to Vendors

Money transfers made by a business to its suppliers for goods or services received.

Demand Deposit

Bank accounts that allow the holder to withdraw funds without prior notice, such as a checking account.

Marketable Securities

Financial instruments that can easily be sold or converted into cash at a value close to their market rate.

Precautionary Demand

Precautionary demand refers to the desire to hold cash or easily liquidatable assets to safeguard against unexpected financial needs or market fluctuations.