The interest rate you typically earn on a deposit at a bank:
A)represents the price of your loan.
B)represents the risk of investing.
C)is the opportunity cost to you of lending money.
D)is the opportunity cost to a bank of lending money.

Question

Quizplus · Accepted Answer

The interest rate on a deposit at a bank is the opportunity cost to you of lending money to the bank, as it represents the return you forego on alternative investments by choosing to deposit your funds in the bank.

The Interest Rate You Typically Earn on a Deposit at a Bank