Which of the Following Would Be Expected to Increase the Demand

question 47

Multiple Choice

Which of the following would be expected to increase the demand for U.S. currency?

• A)Competition among brokers forces down the commission charge for selling bonds or stocks.
• B)The economy enters a recession.
• C)Political instability rises dramatically in developing nations.
• D)Online banking allows customers to transfer funds between checking and stock mutual funds 24 hours a day.

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Definitions:

Acceptable Prices

Prices that consumers feel are fair for products or services, and are willing to pay.

Total Revenues

The overall amount of money received by a firm from sales of its products or services, before any costs are deducted.

Equilibrium Point

The condition in a market where the supply of goods matches demand, leading to a stable price and quantity for the good or service.

S And D Curves

In economics, the supply and demand curves which graphically represent the relationship between the quantity of goods that producers are willing to sell and consumers are willing to buy at different price levels.