Speaking of the Demand for Money

question 57

Multiple Choice

Speaking of the demand for money

• A)makes no sense in a modern society in which most people use credit cards
• B)makes no sense in a modern society in which most people use checks
• C)makes sense in a modern society in which most people use checks,since demand deposits are included in M1,but it does not make sense in a society in which the primary payment is by credit card
• D)makes sense in a modern society in which most people use credit cards,since credit cards are included in M1,but it does not make sense in a society in which the primary payment is by check
• E)is relevant even in a society in which primary payment is by credit card,since eventually all accounts must be settled with money

---

Definitions:

Centralization

Centralization refers to the concentration of decision-making authority and control at the top levels of an organizational hierarchy.

Decision Making

The process of selecting a course of action from multiple alternatives to achieve a desired outcome.

Divisionalized Form

A type of organizational structure where operations are separated into semi-autonomous units or divisions, each responsible for its own performance.

Centralized Form

An organizational structure where decision-making authority is concentrated at the top levels, with little autonomy given to lower levels.