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Precautionary demand for money arises from the desire of individuals and firms to hold cash Question 4 6 options: A ) to meet unforeseen emergency
Precautionary demand for money arises from the desire of individuals and firms to hold cash
Question options:
A
to meet unforeseen emergency expenses.
B
for speculative equity purchases.
C
in anticipation of investing in capital purchases for the firm.
D
to maintain adequate cash flow in case a capitalistic opportunity arises.
E
in anticipation of changes in interest rates and bond prices.
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