Why Is Demand for Money Relevant in a Modern Economy

question 98

Multiple Choice

Why is demand for money relevant in a modern economy?  

• A) because the primary payment for purchases is made by cash 
• B) because demand deposits are included in M1+ 
• C) because credit cards are included in M1+ 
• D) because all accounts must eventually be settled with money

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Definitions:

Katz's Skills Model

A leadership theory identifying three essential skills for effective management: technical, human, and conceptual skills.

Social Judgment Skill

The ability to understand and interpret the feelings, thoughts, and behavior of others in social situations.

Mental Structures

The frameworks of the mind that support understanding, reasoning, decision-making, and memory.

Intellectual Ability

The capacity to perform mental activities—thinking, reasoning, and problem-solving—at a high level of complexity and efficiency.