Which of the following was identified by Keynes as an important motive behind the demand for money?
A) the transactions demand for money that reflects the desire of individuals to have enough cash on hand to accommodate their anticipated transactions
B) the precautionary demand for money that reflects the desire of individuals to have enough cash available to cover most unexpected emergency expenditures
C) the speculative demand for money that reflects the desire of individuals to have enough cash available to take advantage of a potential future financial opportunity
D) all of the above
E) none of the above; these motives were identified by Baumol and Tobin
Correct Answer:
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Q16: The reserve requirement is
A) the fraction of
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Q20: Which of the following is a financial
Q22: Let the reserve requirement be 15 percent
Q23: The share of currency in M1 as
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