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:

Poverty Trap

A self-reinforcing mechanism which causes poverty to persist, because people with very little resources cannot improve their economic situation despite efforts.

Individual Capability

The skills, knowledge, and abilities possessed by an individual that enable performance or achievement in a particular area.

Susceptible

Likely to be influenced or harmed by a particular thing.

Jeffrey Sachs

An American economist known for his work on sustainable development, poverty alleviation, and as a special advisor to the United Nations.