Transaction Theories of Money Demand Emphasize the Role of Money

question 37

Multiple Choice

Transaction theories of money demand emphasize the role of money as a:

• A)medium of exchange.
• B)store of value.
• C)unit of account.
• D)standard for making deferred payments.

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Definitions:

Elasticity

The capacity of a material or body to return to its original shape after being stretched or compressed.

Smooth Muscles

Involuntary, non-striated muscles found in the walls of internal organs and blood vessels, controlling their movements.

Voluntary Muscles

Muscles that can be consciously controlled by the individual, such as skeletal muscles that move parts of the body.

Cramp

A sudden, involuntary contraction of a muscle or group of muscles causing pain.