People incur a cost for holding money instead of nonmonetary assets such as Treasury bills.

Name: People incur a cost for holding money instead of nonmonetary assets such as Treasury bills.
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

This is known as the opportunity cost of holding money. Money earns no interest, whereas nonmonetary assets such as Treasury bills can earn interest, so choosing to hold money instead of these assets incurs a cost in terms of foregone interest earnings.

People Incur a Cost for Holding Money Instead of Nonmonetary