Which One of the Following Is Not a Valid Explanation

question 9

Multiple Choice

Which one of the following is not a valid explanation for why workers may prefer an extra dollar's worth of fringe benefits to an extra dollar's worth of cash?

• A)workers may prefer to bind themselves against their own tendencies toward immediate gratification
• B)certain fringe benefits effectively trade current taxes for future taxes
• C)people generally prefer in-kind benefits to cash
• D)certain fringe benefits are untaxed

---

Definitions:

Transaction Demand

The demand for money as a medium of exchange, influenced by the level of economic activity.

Branch Banking

The operation of a banking service through multiple branches located in different areas, offering a wide range of services to customers across locations.

States

Individual territorial units constituting a federal union, such as those that make up the United States, each with its own government and a degree of autonomy.

Money Supply

The entire sum of available monetary assets in an economy, comprising cash, coins, and the amounts held in checking and savings accounts, at a specific point.