A wealthy executive is holding money, waiting for a good time to invest in the stock market. This action would be an example of the:

Question

Quizplus · Accepted Answer

The wealthy executive holding money to invest in the stock market reflects the asset demand for money, as holding money is seen as an asset that can be used to purchase other assets, such as stocks. Transactions demand for money is the demand for money to facilitate day-to-day transactions, while the creation of fiat money and the use of money as a medium of exchange are not relevant to this scenario.

A Wealthy Executive Is Holding Money, Waiting for a Good