Which of the Following Would Reflect the Transactions Demand for Money

question 3

Multiple Choice

Which of the following would reflect the transactions demand for money?

• A) Keeping funds in your checking account to pay your rent
• B) Keeping funds in your savings account because the interest rate looks relatively attractive
• C) Selling common stocks you own and increasing the money in your savings account because you think stock prices will fall soon
• D) Buying a U.S. Treasury security using funds from your checking account

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Definitions:

Child Safety Seats

Specially designed seats for vehicles that protect infants and young children during transport.

Public Policies

Principles and actions taken by governments to address public issues, ranging from health and safety to economic growth.

Health Care

A broad field involving the provision of medical services to prevent, treat, and manage illness, as well as to preserve mental and physical well-being through the services offered by the medical, nursing, and allied health professions.

Motor Vehicle

A self-propelled vehicle used for transportation of people or goods on roads.