Why Do People Primarily Own or Hold Money

question 119

Multiple Choice

Why do people primarily own or hold money?

• A) because it has a guaranteed nominal return
• B) because it can be invested for a guaranteed real return
• C) because it can be used directly to buy goods and services
• D) because it functions as a unit of account

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Definitions:

Mum Effect

is the tendency to avoid communicating unfavorable news or feedback due to fear of the recipient's reaction or to avoid conflict.

Grapevine

An informal communication network among people in an organization, not sanctioned by formal channels.

Information Filtering

The process of sifting through and reducing the volume of information available to focus on the most relevant or important details.

Informal Communication

The exchange of information, thoughts, or messages in an unofficial capacity, often through social interactions or casual means.