Solved

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

Question 33

Multiple Choice

Joan 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 Joan's money demand by $100?


A) Joan writes a check for $100 to pay down her credit card balance.
B) Joan writes a check for $100 to pay down her car loan balance.
C) Joan pays $100 cash for a new lamp.
D) Joan sells a $100 government bond and puts the proceeds in her checking account.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions