With a higher interest rate, the opportunity cost of keeping your money as cash is:

Question

Quizplus · Accepted Answer

When interest rates are higher, the opportunity cost of keeping your money as cash is higher because you will forgo a greater amount of potential interest earnings. This means that it is more costly to hold onto cash when interest rates are higher and it would be more advantageous to invest the money in an account or instrument that earns interest.

With a Higher Interest Rate, the Opportunity Cost of Keeping