Which statement most accurately describes the effect financial technology has had on the demand for money in Australia?
A) It is not possible to tell what the effect would be because financial technology has not changed over the past three decades.
B) All advances in financial technology have decreased the demand for money.
C) Advances in financial technology have had no effect on the demand for money.
D) All advances in financial technology have increased the demand for money.
E) Some advances in financial technology have increased the demand for money while others have decreased it.

Question

Quizplus · Accepted Answer

Advances in financial technology (fintech) have had varied effects on the demand for money in Australia. Some innovations, like digital payment systems, may reduce the need for physical cash, thus decreasing the demand for money. Others, such as investment apps, could increase the demand by making financial services more accessible. Therefore, the impact of fintech on the demand for money is not uniform and can both increase and decrease it depending on the nature of the technology.

Which Statement Most Accurately Describes the Effect Financial Technology Has