Catherine Jones Has Determined the Following Information About Her Own

question 61

Multiple Choice

Catherine Jones has determined the following information about her own financial situation.Her checking account is worth $500 and her savings account is worth $900.She owns her own home that has a market value of $98,000.She has furniture and appliances worth $12,000 and a home computer and laptop worth $3,300.She has a car worth $12,500.She has recently purchased an annuity worth $5,500 and she has a retirement account worth $38,550.What is the value of her liquid assets?

• A)$1,400
• B)$98,000
• C)$27,800
• D)$44,050
• E)$171,900

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Definitions:

Money

A medium of exchange that is widely accepted in transactions for goods and services and repayment of debts.

Wealth

The total value of all financial assets and physical possessions owned by an individual or entity, minus any debts.

Required Reserve Ratio

The percentage of deposits that banks are mandated to keep on hand and not lend out, as regulated by central banking authorities.

Money Supply

The total amount of monetary assets available in an economy at any given time, including cash, coins, and balances held in checking and savings accounts.