Question

If the quantity of money demanded exceeds the quantity of money supplied, then:

A) the quantity of nonmonetary assets demanded exceeds the quantity supplied.

B) the quantity of nonmonetary assets supplied exceeds the quantity demanded.

C) the quantity of nonmonetary assets demanded will still equal the quantity supplied, all else being equal.

D) you can make no conclusions about the relative supply and demand of nonmonetary assets

Answer 1

Answer:

The answer is option B. If the quantity of money demanded exceeds the quantity of money supplied, then: the quantity of non-monetary assets supplied exceeds the quantity demanded.

Explanation:

Non-monetary assets are assets that appear on the balance sheet but are not readily or easily convertible into cash or cash equivalents. they include equipment, buildings, lands, inventory, and patents.

If the quantity of money demanded exceeds the quantity of money supplied, then the company will be forced to part with their non monetary assets to meet up their capital needs.

In this situation, the quantity of non-monetary assets supplied will exceed the quantity demanded.