Banks tend to offer low interest rates for saving in periods of low expected inflation.

Question

Quizplus · Accepted Answer

When inflation is low or expected to remain low, banks tend to offer lower interest rates on savings accounts and other types of deposit accounts. This is because they don't need to compete as aggressively for funds from depositors, as there is less demand for loans and other credit products. However, when inflation rises or is expected to rise, banks may offer higher interest rates in order to attract more depositors and compete more effectively for funds.

Banks Tend to Offer Low Interest Rates for Saving in Periods