Suppose that you hold your money balances in cash (the most liquid assets) rather than holding some other less liquid assets (such as bonds) . The opportunity cost of holding cash is:
A) zero.
B) the consumption that you give up by holding your money rather than spending it.
C) the foregone interest-income that you could have earned if you held your financial assets in bonds.
D) loss of purchasing power due to inflation.
Correct Answer:
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