Speculative Demand for Money Arises from the Desire by Individuals

question 33

Multiple Choice

Speculative demand for money arises from the desire by individuals and firms to hold cash balances

• A)to meet unforeseen business expenses.
• B)in anticipation of investing in capital purchases for the firm.
• C)to maintain adequate cash flow in case of inflation.
• D)for speculative equity purchases.
• E)in anticipation of changes in interest rates and bond prices.

---

Definitions:

United States

A country in North America comprising 50 states, a federal district, five major self-governing territories, and various possessions, known for its large economy and diverse population.

Tax Rate Structure

Tax Rate Structure refers to the system of taxing income, property, goods, or transactions at different rates, based on the amount, value, or type.

Tax Base

The total amount of assets or income that can be taxed by a government, forming the foundation for calculating taxes to be levied.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.