People Will Want to Hold Less Money If the Price

question 67

Multiple Choice

People will want to hold less money if the price level

• A)increases or if the interest rate increases.
• B)decreases or if the interest rate decreases.
• C)increases or if the interest rate decreases.
• D)decreases or if the interest rate increases.

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Definitions:

Daily Interest Rate

Daily Interest Rate refers to the percentage of interest that is calculated on a daily basis for financial products like loans or savings accounts.

Cheques

Documents that are written, dated, and signed, instructing a bank to pay a particular amount of money either to the holder or to an individual named in the document.

Daily Interest Rate

The rate at which interest accumulates on a financial instrument on a daily basis, often used for savings accounts, loans, and credit cards.

Delay

The time period by which a task or activity is late or postponed from its planned start or completion date.