The Reason That People May Not Want to Hold Money

question 323

Multiple Choice

The reason that people may not want to hold money is

• A) the precautionary demand for money and the risk of being robbed.
• B) the opportunity cost.
• C) the transactions demand makes it unnecessary.
• D) due to the direct relationship between money demand and the interest rate.

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Definitions:

Constant Worry

A persistent state of anxiety where an individual is often overly concerned about a variety of issues beyond their control.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about various aspects of life, not tied to any specific threat.

Insomnia

A sleep disorder characterized by trouble falling or staying asleep, leading to impaired daytime functioning.

Rapid Heartbeat

A condition where the heart rate is significantly faster than normal for age, condition, and level of activity.