Final Answer:
The following situations would encourage people to invest their money in a savings account rather than keep it in cash:
c. Rising interest rates.
Step-by-step explanation:
When interest rates are rising, putting money in a savings account becomes more attractive compared to keeping it in cash. Higher interest rates mean that the money held in a savings account will grow faster over time, accruing more interest than if it were kept as cash. This incentivizes people to invest in savings accounts as they can earn more on their savings.
Additionally, rising interest rates often signal a stronger economy. In such times, individuals might feel more confident in placing their money in savings accounts as they anticipate better returns and stability. This contrasts with cash, which remains stagnant and doesn't generate any additional income.
Moreover, in an environment of increasing interest rates, the opportunity cost of holding cash becomes more significant. With interest rates on the rise, the potential returns from savings accounts overshadow the risk of inflation diminishing the value of idle cash, pushing people towards investing in savings accounts for better wealth preservation and growth opportunities.
Therefore the correct answer is c. Rising interest rates.