All of the Following Are Reasons Why People Hold Cash

question 55

Multiple Choice

All of the following are reasons why people hold cash money except:

• A)money can be used to buy goods.
• B)emergencies.
• C)to avoid losses from changes in bond prices.
• D)cash earns interest.

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Definitions:

Mixed Strategy

Strategy in which a player makes a random choice among two or more possible actions, based on a set of chosen probabilities.

Game Theory

A mathematical and economic theory that analyzes the strategic interactions among rational decision-makers.

Homogeneous Good

A product that is considered identical or uniform across producers and can be easily substituted.

Annual Profit

The total earnings a business has after subtracting all expenses over a year.