The opportunity cost of money is:
A)the time spent going to the bank to withdraw funds.
B)the fees charged by banks to provide checking services.
C)the nominal interest rate.
D)the price level.

Name: The opportunity cost of money is: A)the time spent going to the bank to withdraw funds. B)the fees charged by banks to provide checking services. C)the nominal interest rate. D)the price level.
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Question

Quizplus · Accepted Answer

When people hold cash they face an opportunity cost because they forego earnings on interest-bearing accounts.

The Opportunity Cost of Money Is