The Speculative Demand for Money May Not Exist Because

question 10

Multiple Choice

The speculative demand for money may not exist because

• A)banks now pay interest on some types of checkable deposits.
• B)there are alternative riskless assets paying higher returns than the return on money.
• C)the transactions demand can be shown to depend on interest rates.
• D)government regulations have eliminated risk in the financial markets.

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Definitions:

Expenses

Costs incurred during the operation of a business, such as rent, salaries, and utilities, required for generating revenue.

Revenue

The overall earnings accrued from transactions involving goods or services at the heart of a business's primary operations.

Retrospective Approach

The retrospective approach involves revising previously issued financial statements to reflect changes in accounting policy as if the new policy had always been in effect.

Change In Accounting Principle

An adjustment made to the accounting methods used by a company, requiring retrospective restatement of prior financial statements to reflect the new principle.