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ra1l [238]
2 years ago
15

Joan has the following assets and liabilities: Credit card balance $1,000 Cash $200 Government bonds $3,000 Checking $300 Car lo

an balance $10,000 Car $15,000 What is Joan's money demand?A) $200 B) $300 C) $500 D) $1,000 E) $11,000
Business
1 answer:
rodikova [14]2 years ago
3 0

Answer:

C. $500

Explanation:

Money demand can be defined as the part of an assets in which a person is ready to hold as cash . The money can however be used to purchase goods or services.

Money demand can be denoted as

= Cash balance + Checking account balance.

Given that;

Cash balance = $200

Checking account balance = $300

Money demand = $200 + $300

Money demand = $500

Therefore, Joan's money demand is $500.

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