If Interest Rates Decrease to a Very Low Level, People

question 2

Multiple Choice

If interest rates decrease to a very low level, people will most likely hold

• A) more money in savings accounts and less cash.
• B) less money in savings accounts and less cash.
• C) less money in savings accounts and more cash.
• D) more money in savings accounts and more cash.

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Definitions:

Ocean-continent Convergent

A type of tectonic plate boundary where oceanic and continental plates converge, typically resulting in subduction of the oceanic plate and formation of mountain ranges and volcanic activity on the continental plate.

Transform Boundary

A type of fault where tectonic plates slide past one another horizontally, leading to earthquakes but not substantial vertical movement.

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, that encircles the globe, marked by volcanic activity and seafloor spreading.

Island Arc

A curved chain of volcanic islands located at a tectonic plate margin, formed by the subduction of an oceanic plate.