What Is the Product of This Reaction

question 42

Multiple Choice

What is the product of this reaction?

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Definitions:

Precautionary Motive

The desire to hold liquid assets as a safeguard against unforeseen emergencies or as a precaution against future financial uncertainties.

Speculative Motive

The intent to hold cash or assets in anticipation of future price changes to make a profit.

Money Supply

The aggregate money supply in an economy at a particular time, covering cash, coins, and deposits in checking and savings accounts.

Demand Deposits

Bank accounts from which deposited funds can be withdrawn at any time without any advance notice to the bank.