Money Demand Behavior May

question 38

Multiple Choice

Money demand behavior may

• A) change as a result of demographic trends or financial innovations such as electronic cash-transfer facilities.
• B) change only as a result of demographic trends.
• C) change only as a result of financial innovations such as electronic cash-transfer facilities.
• D) not change as a result of demographic trends or financial innovations such as electronic cash-transfer facilities.
• E) change as a result of demographic trends but not as a result of financial innovations such as electronic cash-transfer facilities.

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Definitions:

Paid-In Capital

The total amount of money that a company has received from shareholders in exchange for shares of stock, exceeding the par value of the shares.

Stock Split

An action by a company to increase the number of its outstanding shares by issuing more shares to current shareholders, usually to make the stock more affordable.

Common Stock

A type of equity ownership in a corporation, where holders have voting rights and potentially receive dividends.

Stock Dividend

A distribution of extra shares to a company's shareholders, as opposed to monetary compensation.