Which of the Following Would Be Classified as Precautionary Demand

question 81

Multiple Choice

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

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Definitions:

Political Revolution

A fundamental and sudden change in political power and political organization, which is typically brought about by mass movements and sometimes leads to profound changes in culture and society.

William Wallace

A Scottish knight who became one of the main leaders during the First War of Scottish Independence against England in the late 13th and early 14th centuries.

Scottish Warrior

A term referring to fighters from Scotland, typically associated with historical battles and clan warfare.

Government of The People

A political system in which power is vested in the citizens, typically through elected representatives, embodying the principles of democracy.