What is the opportunity cost of holding money rather than some other financial asset?
A)the forgone interest income
B)the forgone utility
C)time
D)the forgone leisure
E)the forgone profit

Question

Quizplus · Accepted Answer

The opportunity cost of holding money is the forgone interest income that could have been earned if the money had been invested in some other financial asset such as stocks, bonds, or real estate. By holding money, individuals are giving up the potential returns that could have been earned from these alternative investments.

What Is the Opportunity Cost of Holding Money Rather Than