The Opportunity Cost of Holding Money Instead of an Interest

question 63

Multiple Choice

The opportunity cost of holding money instead of an interest earning asset is the

• A) real interest rate.
• B) nominal interest rate.
• C) inflation rate minus the nominal interest rate.
• D) inflation rate.
• E) inflation rate minus the real interest rate.

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Definitions:

Authoritative Parents

A parenting style characterized by high responsiveness and high demands, balancing clear, strict guidelines with emotional support and recognition of independence.

Personality Development

The growth and development of the organized pattern of behaviors and attitudes that makes a person distinctive.

Biological Parents

The parents who contributed the genetic material to the creation of an offspring.

Adopted Children

Children who have become part of a family they were not born into, through a legal process.