Question

bank accounts that offer more liquidity to the depositor pay a _______ rate of interest.

○ higher

○ lower

○ stable

○ very high

Explanation:

In finance (a subfield of Business), there's a trade - off between liquidity and interest rates for bank accounts. More liquid accounts (like checking accounts) allow easy access to funds, so banks pay lower interest as they can use the funds more flexibly. Less liquid accounts (like long - term CDs) pay higher interest to compensate for the lack of immediate access. So accounts with more liquidity pay a lower interest rate.

Answer:

B. lower