Which of the following is the foregone interest that holding nonmonetary financial assets would have yielded?

Question

Quizplus · Accepted Answer

The foregone interest refers to the opportunity cost of holding nonmonetary financial assets instead of earning interest on those assets. The costs of holding real money balances (such as storage and security costs) are not related to the forgone interest. The benefits of holding real balances, transactions motive, and liquidity preference are also not directly related to the forgone interest.

Which of the Following Is the Foregone Interest That Holding