Matching
what each of the following illustrates about holding money.
Premises:
A bond broker holds cash for the possibility of buying a bond whose price is expected to rise.
John's mother tells him to keep $10 in his pocket any time he goes out in case he needs to put gas in the car.
As stock prices begin to tumble,investors sell stock and increase their cash holdings.
Julio withdraws $100 from the bank to buy vegetables at the local organic farm market.
Mary takes out $50 from the bank to buy lunches during the week.
Responses:
speculative
precautionary
transaction
Correct Answer:
Premises:
Responses:
A bond broker holds cash for the possibility of buying a bond whose price is expected to rise.
John's mother tells him to keep $10 in his pocket any time he goes out in case he needs to put gas in the car.
As stock prices begin to tumble,investors sell stock and increase their cash holdings.
Julio withdraws $100 from the bank to buy vegetables at the local organic farm market.
Mary takes out $50 from the bank to buy lunches during the week.
Premises:
A bond broker holds cash for the possibility of buying a bond whose price is expected to rise.
John's mother tells him to keep $10 in his pocket any time he goes out in case he needs to put gas in the car.
As stock prices begin to tumble,investors sell stock and increase their cash holdings.
Julio withdraws $100 from the bank to buy vegetables at the local organic farm market.
Mary takes out $50 from the bank to buy lunches during the week.
Responses:
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