Jim has the following assets and liabilities:Credit card balance$2,000Cash$500Government bonds$2,000Stock$5,000Checking$750Car loan balance$5,000Car$15,000 Which of the following actions would decrease Jim's money demand by $200?
A. Jim sells $200 worth of stocks and puts the proceeds in his checking account.
B. Jim writes a check for $200 to pay down his credit card balance.
C. Jim writes a $200 check for cash and holds the cash.
D. Jim sells a $200 government bond and puts the proceeds in his checking account.
Answer: B
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