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:

Decreases

Represents a decline in quantity, value, or quality of an asset, revenue, or any other financial element.

Individual Accounts

Personal financial accounts held by an individual, such as savings, checking, or retirement accounts, distinct from joint or business accounts.

Erroneous Arrangement

A situation or setup that contains mistakes or is improperly organized, potentially leading to inaccurate results or conclusions.

Slide

An error in which the entire number is moved one or more spaces to the right or the left, such as writing $542.00 as $54.20 or $5,420.00.