What does "higher interest rates are a trade‐off for lower liquidity" mean?

1 answer:

8 0

Higher interest rates are a trade‐off for lower liquidity meaning, if you choose an account with a higher interest rate to earn more money, you have a smaller chance for liquidity.

A checking and savings account typically have a lower interest rate but you have a larger chance for liquidity (spendability). With something like a certificate of deposit, you have a higher interest rate but less options with regards to spending.

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sladkih [1.3K]

Answer:

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This strategy can create a competitive advantage for goods that will ensure that the company maintains a dominant place in the market.

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The answers are:

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