The "Transactions Demand" for Money Arises from the Fact That

question 38

Multiple Choice

The "transactions demand" for money arises from the fact that

• A)there is uncertainty about the movement of interest rates.
• B)households decide to hold money in order to make purchases of goods and services..
• C)households wish to have all their wealth in the form of money.
• D)households want to keep cash on had to buy bonds if bond prices drop.
• E)there is uncertainty in the receipts of income.