Suppose You Can Earn 5 Per Cent on Your Savings

question 10

Multiple Choice

Suppose you can earn 5 per cent on your savings account if you deposit $500 in it. The inflation rate is 3 per cent. The opportunity cost of holding the $500 as money is

• A) $100.
• B) $25.
• C) $80.
• D) $30.
• E) $525.

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Definitions:

Ribosomes

Cell organelles composed of RNA and protein, where protein synthesis takes place.

Death

The permanent cessation of all biological functions that sustain a living organism, marking the end of its life.

Anticodon AAA

Refers to a three-nucleotide sequence on tRNA that is complementary to a specific mRNA codon, in this case, the AAA codon.

Codon

A sequence of three nucleotides in messenger RNA (mRNA) that specifies the addition of a specific amino acid to a growing polypeptide chain during protein synthesis.