A "free" chequing account with a minimum balance of $500 has an opportunity cost of lost interest.

Question

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By keeping a minimum balance of $500 in a "free" chequing account, the account holder may be missing out on the opportunity to earn interest on that money in a high-yield savings account or other investment option. This represents an opportunity cost of choosing to keep the money in a chequing account, even if there are no fees or charges associated with the account.

A "Free" Chequing Account with a Minimum Balance of $500