Alexa Keeps $500 Readily Accessible in Her Checking Account So

question 24

Multiple Choice

Alexa keeps $500 readily accessible in her checking account so that she can take advantage of changes in the prices of other financial assets. This illustrates the

• A) speculative demand for money.
• B) transfer demand for money.
• C) precautionary demand for money.
• D) transactions demand for money.

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Definitions:

External User

External users are individuals or entities outside a company who use financial statements to make decisions about the company, such as investors and creditors.

Business Enterprise

An organizational entity involved in commercial, industrial, or professional activities with the goal of generating economic returns.

Information Management

The process of collecting, storing, managing, and distributing information in an efficient and effective manner to support business processes.

Legal Entity

An organization that has legal rights and obligations, such as a corporation, partnership, or sole proprietorship.