Which Statement Most Accurately Describes the Effect Financial Technology Has

question 9

Multiple Choice

Which statement most accurately describes the effect financial technology has had on the demand for money in Australia?

• A) It is not possible to tell what the effect would be because financial technology has not changed over the past three decades.
• B) All advances in financial technology have decreased the demand for money.
• C) Advances in financial technology have had no effect on the demand for money.
• D) All advances in financial technology have increased the demand for money.
• E) Some advances in financial technology have increased the demand for money while others have decreased it.

---

Definitions:

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period, usually one year.

Balance Sheet

A financial statement that shows the assets, liabilities, and shareholders' equity of a company at a specific point in time, providing a snapshot of its financial condition.

External Financing Needed

The additional funding required by a firm to finance its business activities and growth outside of internal cash flows.

Dividend Payout Ratio

The percentage of a company's earnings paid out to shareholders in the form of dividends.