Why have opportunity costs of maintaining cash balances decreased in importance in recent years?
A)Lower interest rates have reduced the opportunity costs associated with maintaining cash balances.
B)Most banks allow firms to move cash in and out of interest-bearing accounts easily and cheaply.
C)More competition among banks has lowered the opportunity costs that arise from maintaining cash balances.
D)Firms are earning higher profits,so opportunity costs have become smaller relative to those profits.

Question

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The Answer of Why have opportunity costs of maintaining cash balances decreased in importance in recent years?
A)Lower interest rates have reduced the opportunity costs associated with maintaining cash balances.
B)Most banks allow firms to move cash in and out of interest-bearing accounts easily and cheaply.
C)More competition among banks has lowered the opportunity costs that arise from maintaining cash balances.
D)Firms are earning higher profits,so opportunity costs have become smaller relative to those profits.

Why Have Opportunity Costs of Maintaining Cash Balances Decreased in Importance