In an Ideal World, All of Your Bills Would Come

question 72

Multiple Choice

In an ideal world, all of your bills would come due on exactly the same day you get paid. If this were true, then the level of cash you would need to hold to meet your ___________ needs would be relatively low during the month.

• A) Speculative.
• B) Transactions.
• C) Precautionary.
• D) Keynesian.
• E) Float.

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Definitions:

Junk Bonds

High-yield bonds that carry a higher risk of default compared to investment-grade bonds, typically issued by companies with lower credit ratings.

Real Estate Loans

Loans specifically provided for purchasing property, including both residential and commercial properties.

Medium Of Exchange

Items sellers generally accept and buyers generally use to pay for a good or service; the primary job of money.

Keynesian Motive

An economic theory proposed by John Maynard Keynes, suggesting that demand for goods and services is the driving force in an economy, particularly during times of economic downturn.