The Public (Consisting of Individuals and Firms) Holds Money for Several

question 5

Multiple Choice

The public (consisting of individuals and firms) holds money for several reasons. Which of the below is three of these?

• A) Difficulty of translations, precaution against expected events, and speculation about possible rises in the interest rate.
• B) Ease of transactions, precaution against unexpected events, and speculation about possible rises in the interest rate.
• C) Ease of unexpected events, precaution against transactions, and speculation about possible rises in the interest rate.
• D) Speculation about transactions, fear against unexpected events, and precaution about possible rises in the interest rate.

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Definitions:

System II

A term often used to describe slow, deliberate, and analytical thought processes in dual-process theories of cognition.

System I

Often referred to as "System 1," it is the fast, automatic, intuitive approach of the human brain to decision-making.

System II

Refers traditionally to the analytical, controlled, and effortful mode of thinking, as contrasted with the fast, automatic, intuitive processing of System I.

System I

A term often used in behavioral economics to describe the fast, instinctive, and emotional way of thinking, as opposed to slower, more deliberative thinking.