Holding Cash for Speculative Demand Refers To

question 93

Multiple Choice

Holding cash for speculative demand refers to:

• A)keeping cash on hand to pay for emergency needs.
• B)holding cash to compensate banks for the services they perform.
• C)keeping money in the bank to pay bills for the goods and services they use.
• D)keeping cash to take advantage of unexpected opportunities.

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum quantity of goods and services that can be produced within a given set of resources and technology.

Efficiently

Achieving maximum productivity with minimum wasted effort or expense.

Economy's Capacity

The maximum level of output that an economy can sustain over a period of time without increasing inflation.

Bowed Outward

A description of a production possibility frontier that displays increasing opportunity costs as more of one good is produced.