Which of the Following Statements Is False

question 7

Multiple Choice

Which of the following statements is false?

• A)The cost of holding real money balances is the foregone interest that holding nonmonetary financial assets would have yielded.
• B)The benefits of holding real money balances is the stream of services that holding real money balances yields.
• C)The demand for money is a demand for nominal money balances.
• D)If the brokerage fee increases, households make fewer calls to the broker.

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Definitions:

Finance Charge

A fee charged for the use of credit or the extension of existing credit, often expressed as an annual percentage rate.

Credit Card Statement

A monthly document provided by credit card companies that details all the transactions, fees, payments, and outstanding balance for the account.

Monthly Credit

Refers to any credit received or applied to an account each month, such as cash back from a credit card or credit for returned items.

Total Cost

The complete amount of money spent on producing or acquiring goods or services, including all variable and fixed costs.