Suppose That Banks Pay 4 Percent Interest on Checking Accounts

Multiple Choice

Suppose that banks pay 4 percent interest on checking accounts while U.S.Savings Bonds pay 6 percent interest.Under these conditions

A) no nonmonetary assets are willingly held.
B) a combination of money and nonmonetary assets are willingly held.
C) no money balances are willingly held.
D) we do not have sufficient information to tell whether or not any money balances are willingly held.