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Why does a high interest rate discourage people from holding their money in cash?

April 26, 2017cash discourage high holding Interest rate money people

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Why does a high interest rate discourage people from holding their money in cash?

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When interest rates are high, people would like to deposit their money into an account that will yield a return with that high rate, whereas holding it in cash ensures that you will not make any money off of the money you already have.