Statement I: As the level of income rises,people tend to hold more money.
Statement II: People tend to hold less money as credit availability increases.

Question

Quizplus · Accepted Answer

Both statements are true. As income levels rise, people generally have more disposable income, leading them to hold more money. Similarly, as credit availability increases, individuals may rely more on credit for transactions and emergencies, reducing the need to hold large amounts of cash.

Statement I: as the Level of Income Rises,people Tend to Hold