People might withdraw money from interest-bearing accounts,
A) making the interest rate fall, if there is a surplus in the money market.
B) making the interest rate rise, if there is a surplus in the money market.
C) making the interest rate fall, if there is a shortage in the money market.
D) making the interest rate rise, if there is a shortage in the money market.

Question

Quizplus · Accepted Answer

When people withdraw money from interest-bearing accounts, it reduces the supply of money in the market, leading to a shortage, which causes interest rates to rise.

People Might Withdraw Money from Interest-Bearing Accounts