What Is the Opportunity Cost of Holding Money Rather Than

question 109

Multiple Choice

What is the opportunity cost of holding money rather than some other financial asset?  

• A) forgone interest income 
• B) forgone utility 
• C) forgone leisure 
• D) forgone profit

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Definitions:

Dimension

Dimension is a measurable extent of some kind, such as length, width, height, or time, which helps define the scope or magnitude of an object or concept.

Efficiency

The ability to achieve a desired output or outcome with the minimum amount of input, effort, or waste.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to an increased interconnectedness of the world's economies, cultures, and populations.

Cosmopolitanism

An ideology or disposition characterized by an openness and appreciation of diverse cultures, beliefs, and backgrounds.