When people are deciding whether to deposit money in a bank:
A)they will respond exactly the same to any given interest rate.
B)some will require a higher interest rate to deposit the same amount of money.
C)no one ever deposits exactly the same as another person in response to the same interest rate.
D)they will deposit the same amount in response to any given interest rate.

Question

Quizplus · Accepted Answer

People have different preferences and risk tolerances, so some may require a higher interest rate to justify depositing their money in a bank. This means that the same interest rate might not be equally attractive to all potential depositors.

When People Are Deciding Whether to Deposit Money in a Bank