Carolina Holds $2,000 in Her Savings Account in Case of a Medical

question 110

Multiple Choice

Carolina holds $2,000 in her savings account in case of a medical emergency.This represents a

• A)Medical savings account.
• B)Transaction demand for money.
• C)Precautionary demand for money.
• D)Income demand for money.

---

Definitions:

Liabilities

Liabilities are financial obligations or debts that a company owes to other entities, which are expected to be paid in the future.

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing ownership interest in a company.

Assets

Assets refer to resources owned by a company that have economic value and can be used to meet debts, commitments, or investments.

Retained Earnings

The portion of a company's profits not distributed as dividends to shareholders, but instead reinvested in the business or held as reserves.