The shoe leather costs of inflation include all of the following EXCEPT:
A) the lost purchasing power of cash.
B) the extra costs incurred to avoid holding cash.
C) the cost of more frequent trips to the bank.
D) the installation of a new cash management system.

Question

Quizplus · Accepted Answer

The lost purchasing power of cash is not a shoe leather cost; it is a direct effect of inflation. Shoe leather costs refer to the increased costs and efforts to manage cash holdings due to inflation, such as making more frequent trips to the bank.

The Shoe Leather Costs of Inflation Include All of the Following