Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 13: Problem 18

John Maynard Keynes identified three motives for holding money. Which motive listed below did Keynes not identify? (L.O4) a) Transactions b) Precautionary c) Psychological d) Speculative

Short Answer

Expert verified
The correct answer is (c) Psychological, as it is not one of the motives for holding money mentioned by John Maynard Keynes.

Step by step solution

01

List the three motives for holding money identified by Keynes

John Maynard Keynes identified three motives for holding money. They are: 1. Transactions motive 2. Precautionary motive 3. Speculative motive
02

Go through the given options and compare them with Keynes' list

Now we'll go through each of the given options and compare them to the motives identified by Keynes: a) Transactions: This is one of the motives identified by Keynes (the transactions motive). So this is not the correct answer. b) Precautionary: This is also one of the motives identified by Keynes (the precautionary motive). So this is not the correct answer either. c) Psychological: This is not one of the motives identified by Keynes. It might be an answer, but let's check the last option to be sure. d) Speculative: This is one of the motives identified by Keynes (the speculative motive). So this is not the correct answer.
03

Identify the correct answer

Since we have verified that options (a), (b), and (d) are motives identified by Keynes, the correct answer is (c) Psychological, as it is not one of the motives for holding money mentioned by John Maynard Keynes.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

To get a bank charter, you need to demonstrate each of the following, except (LO6) a) that your community needs a bank or an additional bank b) that you have sufficient banking experience c) that you have enough capital to start a bank d) that you are of good character

Which statement is true? (LO3) a) Credit cards are a form of money. b) Debit cards are a form of money. c) M2 is about six times the size of M1. d) \(\mathrm{M} 1\) is about six times the size of \(\mathrm{M} 2\).

Which one of the following would be the best definition of money? (LO2) a) Any asset that can he used to make a purchase. b) A precious commodity such as gold or silver. c) \(\Lambda\) credit or debit card. d) \(A\) commodity that has an inherent value or use.

Which statement is true? ( \(\mathrm{LO} 2)\) a) Checks are not money. b) A small part of our money supply is silver ccrtificates. c) Most of our money supply is in the form of currency. d) None of these statements is true.

Which statement is true? (LO6) a) Most states allow only unit banking. b) Most states allow unlimited branching. c) Most banks have national charters. d) None of these statements is true.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free