Which of the Following Would Not Be a Consequence of Negative

question 72

Multiple Choice

Which of the following would not be a consequence of negative interest rates?

• A) People's deposits in banks would have shrinking balances over time.
• B) Reduced bank reserves that could cause a contraction in the economy.
• C) People would want to put more money in banks.
• D) People would rather hold cash than bank deposits.

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Definitions:

Trade Deficit

The circumstance where a country's expenditures on imported goods and services exceed the income from its exports, creating a negative trade balance.

Merchandise

Items available for sale in stores or online.

Services

Intangible products provided to consumers, such as healthcare, education, and banking, which do not result in ownership of physical goods.

Educational Services

Professional services that encompass teaching and learning activities, including instruction, training, and other support provided by educational institutions.