In deciding how much money to hold, individuals

Question

Quizplus · Accepted Answer

Individuals need to evaluate the opportunity cost of holding money compared to other assets, such as stocks or bonds, in order to make a decision about how much money to hold. They need to consider the relative costs and benefits of holding onto money versus investing it in other assets that could yield a higher return. Factors such as the current interest rate, inflation, and expected returns on other investments are all important considerations. Therefore, option D is the best choice.

In Deciding How Much Money to Hold, Individuals