Suppose Bob Converted His Portfolio into Cash in 2008 as a Result

question 202

Multiple Choice

Suppose Bob converted his portfolio into cash in 2008 as a result of the bad return he has received in the stock market. In this scenario, the reason Bob holds on to money is the:

• A) speculative demand for money.
• B) liquidity demand for money.
• C) transactions demand for money.
• D) All of the above are correct.

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