If you kept your money under your mattress rather than keeping it in a savings account at your local bank,
A)you would not incur an opportunity cost.
B)the opportunity cost of such an action would be the forgone interest of not putting the money in a savings account.
C)the opportunity cost of such an action would be the gas money it took to drive to the bank.
D)None of the choices are true.

Question

Quizplus · Accepted Answer

Keeping money under a mattress means that the money is not earning any interest, whereas if it were kept in a savings account, it would earn interest. Therefore, the opportunity cost of keeping money under a mattress would be the forgone interest.

If You Kept Your Money Under Your Mattress Rather Than