how does it help the economy that banks offer incentives (like interest payments, deposit insurance, etc.)…

how does it help the economy that banks offer incentives (like interest payments, deposit insurance, etc.) to get customers to deposit money with them?\na it ensures that the banks shareholders will make profits.\nb it makes the financial services industry more competitive.\nc it helps prevent people from keeping their cash out of circulation.\nd it allows for a wider range of investment opportunities for consumers.

how does it help the economy that banks offer incentives (like interest payments, deposit insurance, etc.) to get customers to deposit money with them?\na it ensures that the banks shareholders will make profits.\nb it makes the financial services industry more competitive.\nc it helps prevent people from keeping their cash out of circulation.\nd it allows for a wider range of investment opportunities for consumers.

Answer

Brief Explanations:

When people keep cash out - of - circulation (hoard it), it reduces the money supply available for economic activities like lending and investment. Bank incentives encourage people to deposit money, which banks can then lend out, keeping the money in circulation and fueling economic growth. Option A focuses on bank shareholders' profits rather than the overall economy. Option B is about industry competition rather than direct economic help. Option D is more about consumers' investment opportunities rather than the broader economic impact of money circulation.

Answer:

C. It helps prevent people from keeping their cash out of circulation.