Money is assumed to earn
A)no interest at all,being just currency in hand.
B)in checkable deposit form a rate below "the interest rate."
C)in checkable deposit form a rate equal to "the interest rate."
D)in checkable deposit form a rate above "the interest rate."

Question

Quizplus · Accepted Answer

Money held in checkable deposit form typically earns interest rates below "the interest rate," which refers to the Federal Funds Rate, or the rate at which banks lend money to each other overnight. Currency in hand does not earn any interest. Checkable deposit rates can vary, but they generally do not earn the same interest rates as other longer-term investments, such as savings accounts or bonds.

Money Is Assumed to Earn