Javier Has Been Thinking About Purchasing a Bond but Is

question 239

Multiple Choice

Javier has been thinking about purchasing a bond but is afraid that the bond will lose value. He has decided to hold money instead. This is known as the

• A) precautionary demand for money.
• B) transactions demand for money.
• C) asset demand for money.
• D) money balance demand for money.

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Definitions:

Legal Subject Matter

The specific area or topic within the field of law that is under discussion, analysis, or consideration.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and signed by the involved parties, to prevent fraud.

Force Majeure

A legal clause exempting parties from fulfilling contractual obligations due to unforeseeable circumstances beyond their control, such as natural disasters.

Oral Agreement

A verbal commitment between two or more parties on a set of terms, which can be legally binding in certain circumstances.