Which of the Following Explains Why the Demand for Money

question 63

Multiple Choice

Which of the following explains why the demand for money depends upon the interest rate?  

• A) because money is an interest-earning asset 
• B) because money is NOT an interest-earning asset 
• C) because the alternatives to holding money are NOT interest-earning assets 
• D) because the alternatives to holding money earn more interest than money does

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Definitions:

International Preferred Accounting Practices

Best practice accounting principles that are widely accepted and used by companies across different countries.

IASB

The International Accounting Standards Board, an independent organization responsible for developing and issuing International Financial Reporting Standards (IFRS) used globally for financial reporting.

AICPA

American Institute of Certified Public Accountants, a national professional organization for certified public accountants in the United States.

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Principles that govern a person's behavior or the conducting of an activity, often acting as a guideline for moral conduct.