When deciding whether to deposit money in a bank:
A)everyone will respond exactly the same to any given interest rate.
B)some people will require a higher interest rate to deposit the same amount of money as others.
C)people don't accurately account for the risk of losing savings.
D)most people will deposit a specific amount of money regardless of the interest rate.

Question

Quizplus · Accepted Answer

Different individuals have varying risk tolerances and financial goals, leading some to demand higher interest rates to compensate for the opportunity cost of depositing money in a bank versus other investments.

When Deciding Whether to Deposit Money in a Bank