An Individual's Need for Liquidity Would Increase If

question 40

Multiple Choice

An individual's need for liquidity would increase if

• A) the average value of transactions carried out by the individual fell.
• B) the average value of transactions carried out by the individual rose.
• C) the individual got a raise.
• D) the individual received a new ATM card.
• E) the individual wanted to avoid risks.

Identify the concepts and implications of mercantilism in historical and modern contexts.

Understand the role of economic indicators, including leading, coincident, and lagging indicators, in forecasting economic activities.

Explain the impact of changes in the price level on aggregate demand and aggregate output.

Comprehend how wealth affects consumer behavior and aggregate demand.

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debt over a reporting period.

Note Payable

A written agreement where one party promises to pay another party a definite sum of money either on demand or at a specified future date.

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and payable.

Non-current Liability

A financial obligation that is not due for settlement within one year or the normal operating cycle of the business, often including long-term loans, bonds payable, and lease obligations.