Question

What is the relationship between interest and liquidity in the different savings accounts?

A.If the interest is higher, then liquidity is higher.
B.If the interest is higher, then the liquidity is lower.

Answer 1

Here I think this will help you.
A change in interest rates is one way to make that correspondence happen. A fall ininterest rates increases the amount of money people wish to hold, while a rise ininterest rates decreases that amount.