If Banks Start Paying Higher Interest Rates on Checking Accounts

question 140

Multiple Choice

If banks start paying higher interest rates on checking accounts, we would expect, assuming everything else held equal,

• A)the demand for money to become more sensitive to changes in the interest rate.
• B)the demand for money to become horizontal.
• C)the relationship between interest rates and the demand for money to be unaffected.
• D)the demand for money to become less sensitive to changes in the interest rate.
• E)a decrease in the supply of money.

---

Definitions:

Unfair Conduct

Actions or practices that are deceptive, misleading, or unethical in a business context, often regulated by consumer protection laws.

Per Se Approach

A legal principle where certain conduct is considered inherently illegal without needing to prove its harm to competition.

Rule of Reason Analysis

A legal doctrine used in antitrust law to determine if a business practice is anticompetitive, considering the practice's purpose, effects, and justifications.

2004 Amendments

Refers to specific changes or additions made to legislation or regulations in the year 2004.