Jim has the following assets and liabilities: $\begin{array}{l|r|}
\hline \text { Credit card balance } & \$ 1,000 \
\hline \text { Cash } & \$ 200 \
\hline \text { Government bonds } & \$ 3,000 \
\hline \text { Checking } & \$ 300 \
\hline \text { Car loan balance } & \$ 10,000 \
\hline \text { Car } & \$ 15,000 \
\hline
\end{array}$

What is Jim's money demand?
A)$500
B)$750
C)$1,250
D)$3,250

Question

Jim has the following assets and liabilities: $\begin{array}{l|r|}
\hline \text { Credit card balance } & \$ 1,000 \
\hline \text { Cash } & \$ 200 \
\hline \text { Government bonds } & \$ 3,000 \
\hline \text { Checking } & \$ 300 \
\hline \text { Car loan balance } & \$ 10,000 \
\hline \text { Car } & \$ 15,000 \
\hline
\end{array}$
  
What is Jim's money demand?
A)$500
B)$750
C)$1,250
D)$3,250

Quizplus · Accepted Answer

Money demand refers to the total amount of liquid assets (cash and checking) that Jim wants to hold. In this case, it's the sum of cash ($200) and checking ($300), which equals $500.

Jim Has the Following Assets and Liabilities What Is Jim's Money Demand? A)$500 B)$750 C)$1,250 D)$3,250

Jim Has the Following Assets and Liabilities What Is Jim's Money Demand?
A)$500
B)$750
C)$1,250
D)$3,250