CFA Practice Question

There are 341 practice questions for this study session.

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.
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