The Transactions Demand for Money Exists Because Households

question 79

Multiple Choice

The transactions demand for money exists because households

• A) are insensitive to interest rate changes.
• B) must save for unexpected emergencies.
• C) do not like the fact that money is a liquid asset.
• D) do not receive their incomes at the same time they wish to make purchases.

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Definitions:

Natural Aptitude

An inherent ability or talent in a particular area that enables someone to learn or perform more effectively.

Ability

The capacity of an individual to perform various tasks or skills in a competent manner.

Situational Factors

External influences that affect an individual's decision-making process or behavior in a specific context.

Employee Performance

The extent to which an employee's work outputs and actions align with the goals and expectations of their employer.