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

Question 124

Multiple Choice

Jim has the following assets and liabilities:  Credit card balarice $2,000 Cash $500 Goverzunent bonds $2,000 Stock $5,000 Checking $750 Car loar balarice $5,000 Car $15,000\begin{array} { | l | r | } \hline \text { Credit card balarice } & \$ 2,000 \\\hline \text { Cash } & \$ 500 \\\hline \text { Goverzunent bonds } & \$ 2,000 \\\hline \text { Stock } & \$ 5,000 \\\hline \text { Checking } & \$ 750 \\\hline \text { Car loar balarice } & \$ 5,000 \\\hline \text { Car } & \$ 15,000\end{array}  
Which of the following actions would decrease Jim's money demand by $200?


A) Jim writes a check for $200 to pay down his credit card balance.
B) Jim sells a $200 government bond and puts the proceeds in his checking account.
C) Jim writes a $200 check for cash and holds the cash.
D) Jim sells $200 worth of stocks and puts the proceeds in his checking account.

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