Why do people keep currency in their pockets when bank deposits pay interest?
A)Because banks might steal your money.
B)Because currency is more liquid.
C)Because bank deposits lose value due to inflation.
D)Because bank deposits lose value due to changes in interest rates.

Question

Quizplus · Accepted Answer

Currency is more liquid and can be easily used for small transactions, whereas bank deposits require time and effort to withdraw or transfer funds. Additionally, some people may not trust banks or prefer the security of holding physical cash. However, it's important to note that bank deposits typically offer higher interest rates than the meager interest gained from holding cash, and inflation can cause the value of cash to decrease over time.

Why Do People Keep Currency in Their Pockets When Bank