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What is the disadvantage of holding money

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Reference no: EM131385992

What do economists mean by the demand for money?

A. It is the monetary value of total wealth of individuals.

B. It is the amount of money long dash —currency and checking account deposits long dash —that individuals hold.

C. It is the amount of money long dash —currency and checking account deposits long dash —that individuals use to pay for one transaction per day.

D. It is the amount of currency, checking account deposits and stocks and bonds that individuals hold.

What is the advantage of holding money?

A. Money can be used to buy goods, services, or financial assets.

B. Money held by an individual can be used to measure one's wealth

C. Currency and checkinng account deposits held by individuals earn substantial interest income.

D. An individual pays little or no taxes on the amount of money he holds.

What is the disadvantage of holding money?

A. Money can be easily stolen or lost.

B. Money cannot be readily used to buy financial assets.

C. Money is not very "liquid."

D. Money, in the form of currency or checking account deposits, earns either no interest or a very low rate of interest.

Reference no: EM131385992

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