The $500 Minimum Balance You Are Required to Keep in Your

question 101

True/False

The $500 minimum balance you are required to keep in your NOW checking account represents an opportunity cost.

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Definitions:

Behavioral Economics

A field of economic study that examines how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.

Temptation

The desire to engage in short-term urges for enjoyment, often at the expense of long-term goals.

Prone To Errors

Having a high likelihood of making mistakes or encountering inaccuracies.

Inefficient

A situation or process that does not make the best or most effective use of resources, time, or energy.