Negotiable Order Of Withdrawal (NOW) accounts require consumers to keep a minimum balance in the account. This balance represents the ________ cost of those funds; in that, they cannot be used elsewhere.

Question

Quizplus · Accepted Answer

The minimum balance requirement in a NOW account represents the opportunity cost because those funds cannot be used for other investments or expenditures.

Negotiable Order of Withdrawal (NOW) Accounts Require Consumers to Keep