The opportunity cost of holding money

Name: The opportunity cost of holding money
Brand: Quizplus
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Question

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The opportunity cost of holding money is the interest foregone on potential interest-earning assets. When individuals hold money, they are missing out on the opportunity to earn interest on other potential assets, such as investments or savings accounts. This is why individuals and businesses often try to minimize their holding of cash and maximize their investment in assets that generate returns.

The Opportunity Cost of Holding Money