Advances in financial technology
A) must increase the demand for money.
B) must decrease the demand for money.
C) have no effect on the demand for money or on the supply of money.
D) might increase or decrease the demand for money.
E) affect only the supply of money.

Question

Quizplus · Accepted Answer

Advances in financial technology can lead to both increased or decreased demand for money depending on the nature of the technology. For example, the rise of mobile payment systems may lead to decreased demand for physical cash while the growth of online shopping and e-commerce platforms may lead to increased demand for digital payment systems, ultimately affecting the demand for money.

Advances in Financial Technology