What Happens to Saving When Interest Rates Rise

question 42

Multiple Choice

What happens to saving when interest rates rise?

• A) It increases.
• B) It decreases.
• C) It can increase or decrease.
• D) Saving decisions are independent of interest rates.

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Definitions:

Insurance Policy

A contract between an insurer and a policyholder that specifies the terms of the insurance coverage.

NSF Check

A check that cannot be processed because the drawer's account does not have sufficient funds, standing for Non-Sufficient Funds.

Outstanding Checks

Checks that have been written and recorded in the issuing entity's records but have not yet been cashed or deposited by the recipient.

Cash Overage

A situation where the actual cash on hand exceeds the expected amount, often due to errors in handling or recording.