Making more frequent, but smaller cash withdrawals from banks ________ the inflation losses from holding cash and ________ the shoe leather costs of inflation.
A)increases; increases
B)increases; reduces
C)reduces; has no impact on
D)reduces; increases

Question

Quizplus · Accepted Answer

Keeping lower cash balances reduces the loss from inflation but increases the inconvenience of inflation by requiring more frequent trips to the bank or ATMs.

Making More Frequent, but Smaller Cash Withdrawals from Banks ________