Solved

Jim Has the Following Assets and Liabilities Which of the Following Actions Would Increase Jim's Money Demand

Question 3

Multiple Choice

Jim has the following assets and liabilities:  Credit card balance $1,000 Cash $200 Government bonds $3,000 Checking $300 Car loan balance $10,000 Car $15,000\begin{array}{l|r|}\hline \text { Credit card balance } & \$ 1,000 \\\hline \text { Cash } & \$ 200 \\\hline \text { Government bonds } & \$ 3,000 \\\hline \text { Checking } & \$ 300 \\\hline \text { Car loan balance } & \$ 10,000 \\\hline \text { Car } & \$ 15,000 \\\hline\end{array}
 
Which of the following actions would increase Jim's money demand by $200?


A) Jim writes a check for $200 to pay down his credit card balance.
B) Jim writes a check for $200 to pay down her car loan balance.
C) Jim pays $200 cash for a new lamp.
D) Jim gets a $200 cash advance on his credit card and puts the proceeds in his checking account.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents