The opportunity cost of holding money is measured by

Question

Quizplus · Accepted Answer

Opportunity cost of holding money is the cost associated with forgoing the interest yield that could have been earned by holding some other asset. Therefore, option C is the correct answer. Option A is incorrect because it refers to a specific type of investment and does not consider other available options. Option B is incorrect because it does not consider the potential returns from other assets. Option D is incorrect because liquidity is not the same as opportunity cost.

The Opportunity Cost of Holding Money Is Measured by