If the Demand for Money Increases, This Will

question 71

Multiple Choice

If the demand for money increases, this will:

• A) increase velocity.
• B) decrease velocity.
• C) have no effect on velocity.
• D) cause the Fed to increase the money supply.

---

Definitions:

Market Value

The current value of an asset or company based on the price that a buyer is willing to pay in the market.

Liquidating Dividend

A type of dividend payment made by a corporation using its capital base rather than earnings, typically during partial or full liquidation.

Dividend Policy

A strategy a company uses to decide how much it will pay out to shareholders in dividends.

Alternate Dividend Policy

A strategy employed by a company to distribute earnings to shareholders through dividends that may vary in amount and frequency depending on the company's earnings, investment opportunities, and capital needs.