Keynes Called Money People Hold to Make Routine Day-To-Day Purchases

question 104

Multiple Choice

Keynes called money people hold to make routine day-to-day purchases the:

• A) transactions demand for holding money.
• B) precautionary demand for holding money.
• C) speculative demand for holding money.
• D) store of value demand for holding money.

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Definitions:

Liquidated Debt

A debt with a known, fixed amount that is not disputed by either party.

Unliquidated Debt

A debt for which the exact monetary value has not been determined.

Preexisting Duty

An obligation that a party is already legally bound to fulfill, which cannot serve as consideration for a new contract.

Accord and Satisfaction

A legal settlement where an agreement is made to discharge a claim by providing some form of compensation that differs from the original obligation.