People Learn to Hold a Specific Quantity of Money for the Groceries

question 98

Multiple Choice

People learn to hold a specific quantity of money for the groceries, theater tickets, gasoline, clothes, film, and other items they habitually purchase. This behavior is representative of the:

• A) precautionary demand.
• B) speculative demand.
• C) transactions demand.
• D) volatility demand.
• E) liquidity demand.

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Definitions:

Coconuts

Tropical fruits with a hard shell, edible flesh, and water inside, often used as food or in beverages.

Fish

Aquatic animals that are caught or farmed for human consumption, as well as for recreational fishing, aquarium keeping, and other uses.

Inefficient Combination

A situation where resources are not being used to their fullest potential, resulting in wasted capacity or unmet demand.

Coconuts

Tropical fruits with a hard shell, edible white flesh, and clear liquid inside, widely used for their water, milk, oil, and meat.