A Change in Financial Technology That Reduces the Need to Hold

question 72

Multiple Choice

A change in financial technology that reduces the need to hold cash balances_{--------------------} the demand for money and _{--------------------} the equilibrium nominal interest rate.

• A)decreases; lowers
• B)decreases; raises
• C)increases; raises
• D)decreases; does not change
• E)increases; lowers

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Definitions:

Exit Price

The expected price at which an asset or liability could be sold or transferred under current market conditions.

Good News Earnings

Earnings reports that exceed investors' expectations, positively influencing the company's stock price.

Stock Returns

The returns a shareholder earns on their investment, including both price appreciation and dividends.

Earnings Announcement Date

The specified day on which a company publicly releases its financial performance results for a given period.