The Current Demand for Money Increases When

question 5

Multiple Choice

The current demand for money increases when

• A) current real income decreases.
• B) future real income decreases.
• C) the nominal rate of interest decreases.
• D) none of the above.

---

Definitions:

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in the form of cash.

Net Income

The total earnings of a company after subtracting all expenses, including taxes, from its total revenues.

Indirect Method

Indirect Method is a way of preparing the cash flow statement where net income is adjusted for non-cash transactions, changes in working capital, and other items to calculate cash flow from operating activities.

Operating Activities

Operating Activities involve the primary day-to-day actions related to producing and delivering a company's products or services, influencing cash flow and operating income.