If Interest Rates Decrease to a Very Low Level, People

question 2

Multiple Choice

If interest rates decrease to a very low level, people will most likely hold

• A) more money in savings accounts and less cash.
• B) less money in savings accounts and less cash.
• C) less money in savings accounts and more cash.
• D) more money in savings accounts and more cash.

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Definitions:

Hydraulically

Pertaining to or involving the movement or operation of devices through the pressure of liquids in motion.

Electrically

Pertaining to the use or operation by electricity, involving electronic circuits or devices.

Milky Appearance

Describes a condition where a normally transparent or semi-transparent fluid, like oil or hydraulic fluid, has become cloudy, often due to contamination with water.

Aeration

The blending of a gas into a liquid such as the mixing of air into oil by the churning action of rotating gears.