The Theory of Portfolio Choice Indicates That Factors Affecting the Demand

question 3

Multiple Choice

The theory of portfolio choice indicates that factors affecting the demand for money include

• A)income.
• B)nominal interest rate.
• C)liquidity of other assets.
• D)all the above.

---

Definitions:

Current Liability

A company's debts or obligations that are due within one year.

Operating Activities

These involve the primary, day-to-day activities of producing goods or providing services, which generate most of the company's revenue.

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the company, representing a liability on the balance sheet.

Short-Term Lease

A lease for 12 months or less (including expected renewals and extensions) that does not contain a purchase option that the lessee is expected to exercise.