Investors may wish to hold money in savings accounts when interest rates are low with the intention of moving the money to non-interest-bearing checking accounts when interest rates increase.

Question

Quizplus · Accepted Answer

This statement is not a logical strategy. If interest rates increase, it would be more beneficial to keep the money in a savings account that offers higher interest rates rather than moving it to a non-interest-bearing checking account.

Investors May Wish to Hold Money in Savings Accounts When