John gets paid monthly and pays for everything with cash. When he cash

John gets paid monthly and pays for everything with cash. When he cashes his check he keeps $200 for food, $100 for utilities, $900 for rent, $50 for transportation, $100 for entertainment and $300 for unexpected expenditures.

Which of the following statements is TRUE?
A) The transactions demand for money is $1,350, the precautionary demand is $300 and the asset demand is $0.
B) The transactions demand for money is $350, the precautionary demand is $1,150 and the asset demand is $150.
C) The transactions demand for money is $350, the precautionary demand is $950 and the asset demand is $0.
D) The transactions demand for money is $450, the precautionary demand is $300 and the asset demand is $900.

ANSWER

A