U.S. banks did not offer interest on checking accounts until the beginning of the 1980s. As a result, before the early 1980s:
A) the opportunity costs of keeping funds in checking accounts was zero.
B) the opportunity costs of keeping funds in checking accounts was lower.
C) the opportunity costs of keeping funds in checking accounts was higher.
D) people kept money under their mattress.

Question

Quizplus · Accepted Answer

Before the early 1980s, since U.S. banks did not offer interest on checking accounts, the opportunity cost of keeping money in these accounts was higher compared to other interest-bearing options.

US Banks Did Not Offer Interest on Checking Accounts Until