Which of the following would be classified as precautionary demand for money?
A) You keep a $1,000 in a money market account because the return is better than a savings account at your bank
B) You apply for and receive a credit card with a $1,000 limit
C) You put $1,000 in a savings account at your bank for emergencies
D) You put $1,000 in your checking account each month to cover your regular expenses
Correct Answer:
Verified
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