In a World with Money and Bonds Only

question 18

Multiple Choice

In a world with money and bonds only

• A) it is not risky to hold money.
• B) it is risky to hold money.
• C) risk is an important factor in the demand for money.
• D) there is no relationship between risk and holding money.
• E) assets become meaningless.

---

Definitions:

Corporate Manager

An individual responsible for planning, directing, or overseeing the operations and development of a corporation.

Benefits to Shareholders

Benefits to shareholders refer to the advantages or gains, such as dividends and increase in share value, that shareholders receive from their investment in a company.

Cost to Corporation

The total expenses incurred by a company in the production of goods or services or in its general operations.

Utility Thinking

An approach that emphasizes making decisions based on the overall happiness or satisfaction derived from the outcomes.