What do economists mean by the demand for money? A. It is the amount of moneylong dashcurrency and checking account depositslon
g dashthat individuals hold. B. It is the monetary value of total wealth of individuals. C. It is the amount of moneylong dashcurrency and checking account depositslong dashthat 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.
D. It is the amount of currency, checking account deposits and stocks and bonds that individuals hold.
Explanation:
They explanation below describes demand of money by an economist. Particularly it is of essentially two ways to make money in the stock market: fast and risky or safe and steady.
While traders adhere to the former paradigm, most investors fall into the latter category. Armed with the mantra of “buy low, sell high,” these investors seek out undervalued stocks and buy them with the intent to hold on to these positions for months, if not years. To them, a company’s strong fundamental characteristics and sound management supersede all the chaos and flux that is inherent in the market, and in time, the stock will reward them with a large return on their capital.
The risk premium on any given investment is the difference between the risky investment and the risk free investment and in this case we know treasury bonds are risk free and offer a certain return of coupons because they come from governments rather than the fictional ones like the one from risky investment inc so to find the risk premium we say :
The proper answer is option A "true". It is extremely important to find the source of the information because the source could not be verified (which means its giving false information).
