Suppose an Individual Can Earn 3 Percent Interest on an Annual

question 58

Multiple Choice

Suppose an individual can earn 3 percent interest on an annual term deposit.His opportunity cost of holding $100,000 in cash instead of investing in the term deposit will be:

• A)$3,300.
• B)$330.
• C)$1,000.
• D)$6,000.
• E)$3,000.

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Definitions:

Approach Behavior

Actions or conduct directed towards moving closer to or engaging with a particular object, goal, or individual.

Chronic Illness

A long-term health condition that cannot be completely cured but managed through medication, lifestyle changes, and other therapies.

Coping Mechanisms

Strategies or behaviors used by individuals to manage stress, deal with difficult situations, or adjust to psychological distress.

Chronic Disabilities

Long-term physical or mental impairments that may hinder an individual's ability to carry out daily activities.