Question

In the United States, what does the general level of a family’s income have to do with the amount of cash the family is likely to hold? The lower the real income, the more cash the family will hold. The two factors are not related to each other. The higher the real income, the more cash the family will hold. The higher the real income, the less cash the family will hold.

Answer 1

The correct answer is C. The higher the real income, the more cash the family will hold.

Explanation

The income of a family is the amount of money that the family earns, who are usually the parents. The income allows parents to acquire goods such as a house, cars, motorcycles, food, home appliances, among others. Therefore, the more income a family has, the greater will be its ability to purchase goods and services. Therefore, the correct answer is C. The higher the real income, the more cash the family will hold.