Which statement most accurately describes the effect financial technology has had on the demand for money in the United States?
A)Advances in financial technology have all increased the demand for money.
B)It is not possible to tell what would be the effect because financial technology has not changed over the past three decades.
C)Some advances in financial technology have increased the demand for money while others have decreased it.
D)Advances in financial technology have all decreased the demand for money.
E)Advances in financial technology have had no effect on the demand for money.

Question

Quizplus · Accepted Answer

Advances in financial technology, such as mobile banking and digital payments, have made transactions easier and faster, potentially reducing the demand for physical cash. However, other technologies may increase the demand for money by making it easier to hold and manage. Thus, the effect is mixed.

Which Statement Most Accurately Describes the Effect Financial Technology Has