Module 28

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The Money Market - Fill-in-the-Blank (Part 1)

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sociology

economics

k12

Edad recomendada: 12 años

52 veces realizada

Zachary Foust

Estados Unidos

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Completar frases Module 28Versión en línea The Money Market - Fill-in-the-Blank (Part 1) por Zachary Foust 1 Individuals and firms find it useful to hold some of their assets in the form of money because of the money provides . There is an for convenience , which is the interest you would earn by keeping money in the bank . When the overall level of interest rates , the opportunity cost of holding money too . The quantity of money individuals and firms want to hold , other things equal , is related to the interest rate . The relationship between the and the quantity of money demanded by the public is illustrated by the money demand curve ( MD ) . The money demanded curve can be by a number of factors . prices increase the demand for money , and prices decrease the demand for money . The demand for money is to the price level . The the quantity of goods and services households buy , the the quantity of money they will want to hold . An increase in real GDP , the total quantity of goods and services produced and sold in the economy , shifts the money demand curve . A fall in real GDP shifts the money demand curve . Advances in information technology have tended to the demand for money by making it easier for the public to make purchases without holding significant sums of money . The ability of stores to process credit card transactions via the Internet has widened their acceptance and the demand for cash .