When the Quantity of Money Demanded Exceeds the Quantity of Money

question 291

Multiple Choice

When the quantity of money demanded exceeds the quantity of money supplied:

• A) people offering to sell non-monetary financial assets must increase the interest rate these assets pay to sell them.
• B) interest rates will fall.
• C) the opportunity cost of holding money will fall.
• D) more people will hold money.

---

Definitions:

Individuals

Distinct entities or beings with unique characteristics, often referring to single human beings or organisms.

Interference Competition

A direct form of competition where organisms physically prevent their rivals from accessing resources.

Exploitative Competition

A form of competition where organisms indirectly interact with each other by consuming scarce resources.

Scavenging

The act of consuming dead or decaying organic matter, a process carried out by certain animals, fungi, and microorganisms, which helps recycle nutrients in ecosystems.