- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 4. Monetary Policy
- Subject 1. Role of Central Banks
CFA Practice Question
Which function of money is related to the precautionary demand for money?
A. A medium of exchange
B. A way of storing wealth
C. A measure of value and unit of account
Explanation: Money can serve as a precautionary store of liquidity in the event of unexpected need.
User Contributed Comments 1
| User | Comment |
|---|---|
| victorpang | You need the money for unexpected need for something else. I choose A. |