The Precautionary Demand for Money Is When People Hold Money

question 193

Multiple Choice

The precautionary demand for money is when people hold money

• A) for the interest it yields.
• B) as a store of value.
• C) as a medium of exchange.
• D) to meet unplanned expenditures.

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Definitions:

Human Factors Psychologists

Psychologists who study how people interact with products, environments, and systems with the aim of improving usability and performance.

Natural Perceptions

The innate ability to recognize and understand the natural world through sensory information.

Personnel Psychologists

Professionals specializing in the science of behavior and mental processes within the workplace, focusing on hiring, assessment, training, and employee development.

Organizational Psychologists

Professionals who apply psychological principles and research methods to the workplace to solve problems and improve the quality of work life.