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Jim has the following assets and liabilities: Credit card balance $2,000 Cash $500 Government bonds $2,000 Stock $5,000 Checking $750 Car loan balance $5,000 Car $15,000 Which of the following actions would decrease Jim's money demand by $200? Select one: A. Jim writes a check for $200 to pay down his credit card balance. B. Jim sells $200 worth of stocks and puts the proceeds in his checking account. c. Jim sells a $200 government bond and puts the proceeds in his checking account. D. Jim writes a $200 check for cash and holds the cash.

Jim has the following assets and liabilities: Credit card balance $2,000 Cash $500 Government bonds $2,000 Stock $5,000 Checking $750 Car loan balance $5,000 Car $15,000 Which of the following actions would decrease Jim's money demand by $200? Select one: A. Jim writes a check for $200 to pay down his credit card balance. B. Jim sells $200 worth of stocks and puts the proceeds in his checking account. c. Jim sells a $200 government bond and puts the proceeds in his checking account. D. Jim writes a $200 check for cash and holds the cash.

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 4P
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Jim has the following assets and liabilities: Credit card balance $2,000 Cash $500 Government bonds $2,000 Stock $5,000 Checking $750 Car loan balance $5,000 Car $15,000 Which of the following actions would decrease Jim's money demand by $200? Select one: A. Jim writes a check for $200 to pay down his credit card balance. B. Jim sells $200 worth of stocks and puts the proceeds in his checking account. c. Jim sells a $200 government bond and puts the proceeds in his checking account. D. Jim writes a $200 check for cash and holds the cash.
Transcribed Image Text:Jim has the following assets and liabilities: Credit card balance $2,000 Cash $500 Government bonds $2,000 Stock $5,000 Checking $750 Car loan balance $5,000 Car $15,000 Which of the following actions would decrease Jim's money demand by $200? Select one: A. Jim writes a check for $200 to pay down his credit card balance. B. Jim sells $200 worth of stocks and puts the proceeds in his checking account. c. Jim sells a $200 government bond and puts the proceeds in his checking account. D. Jim writes a $200 check for cash and holds the cash.
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