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:

Corruption

Dishonest or fraudulent conduct by those in power, typically involving bribery.

Cost of Production

The total expense incurred in manufacturing a product or offering a service, including materials, labor, and overhead costs.

Teacher Absenteeism

The phenomenon where teachers frequently miss school, impacting the quality of education and student learning experiences.

Student Absenteeism

Refers to the habitual non-attendance of a student at school without valid reason.