Question

The demand for money is higher in japan than in the united states because:

a. the average price level is lower in japan.
b. most stores in japan do not accept credit cards.
c. japanese banks pay interest on checking accounts. do. the atms are open all night.

Answer 1

The correct answer is letter C, Japanese banks pay interest on checking accounts. In Japan, banks are not willing to pay a high rate of interest. This is the reason why people who use their credit cards or other savings account they get charged extra for interest.