If banks were suddenly prohibited from paying interest on chequing accounts,the demand for money would likely decrease.

Question

Quizplus · Accepted Answer

If banks were prohibited from paying interest on chequing accounts, there would be less incentive for people to hold onto money in these accounts. This could lead to decreased demand for money as people may choose to spend their money or invest it elsewhere instead.

If Banks Were Suddenly Prohibited from Paying Interest on Chequing