Many deposit accounts pay interest, so holding cash does not impose an opportunity cost.

Name: Many deposit accounts pay interest, so holding cash does not impose an opportunity cost.
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Question

Quizplus · Accepted Answer

Many deposit accounts do pay interest, which means that holding cash could potentially impose an opportunity cost if the interest earned on the deposit account is greater than the rate of inflation. Therefore, holding cash does impose an opportunity cost.

Many Deposit Accounts Pay Interest, So Holding Cash Does Not