It Is Costly to Hold Money Because

question 208

Multiple Choice

It is costly to hold money because

• A)deflation may reduce its purchasing power.
• B)in doing so one sacrifices interest income.
• C)bond prices are highly variable.
• D)the velocity of money may decline.

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Definitions:

Intermediation Revenue

Income generated by serving as an intermediary in transactions between two or more parties, such as brokerage fees or commissions.

Third Parties

Entities or individuals who are not directly involved in a transaction or contract but may be affected by it or have a relevant interest.

Middlemen

Intermediaries or agents between the producer and the consumer, facilitating the distribution and sale of goods.

Revenue Model

Describes the strategy by which a business generates income from its operations, products, or services, highlighting different revenue streams.