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:

UCC

The Uniform Commercial Code is an extensive compilation of laws that regulate commercial transactions throughout the United States.

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or to a specified person.

Compliance

Adhering to rules, standards, or laws, or the act of following orders, guidelines, or requests from others.

Extrinsic Motivation

Motivation driven by external rewards, such as money, recognition, or praise, rather than by intrinsic interest or satisfaction in the task itself.