If interest rates decrease to a very low level, people will most likely hold

Question

Quizplus · Accepted Answer

When interest rates decrease to a very low level, the incentive to keep money in savings accounts diminishes because the returns on savings are lower. Consequently, people are more likely to hold onto more cash for transactions or potential investment opportunities, rather than keeping it in a savings account where it earns very little interest.

If Interest Rates Decrease to a Very Low Level, People