Why Do People Keep Currency in Their Pockets When Bank

question 79

Multiple Choice

Why do people keep currency in their pockets when bank deposits pay interest?

• A)because banks might steal your money
• B)because currency is more liquid
• C)because bank deposits lose value due to inflation
• D)because bank deposits lose value due to changes in interest rates

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Definitions:

Proprietary Fund

A type of fund used in governmental accounting that is used to account for activities similar to those found in the private sector, where the payment of fees by external users for goods or services provided by the fund is the principal source of revenue.

Special Tax Levy

A tax imposed for a specific purpose, often by local or state governments, beyond regular taxing mechanisms.

Environmental Preservation

Actions and policies aimed at protecting the natural environment from degradation and pollution to ensure its health and sustainability for future generations.

Derived Tax Revenue

Income obtained by government authorities through taxation that is influenced or generated from specific business activities or transactions.