The Opportunity Cost of Holding Money

question 19

Multiple Choice

The opportunity cost of holding money

• A)decreases when the interest rate increases, so people desire to hold more of it.
• B)decreases when the interest rate increases, so people desire to hold less of it.
• C)increases when the interest rate increases, so people desire to hold more of it.
• D)increases when the interest rate increases, so people desire to hold less of it.

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Definitions:

Source

The originator of a thought or emotion, who puts it into a code that can be understood by a receiver.

Channel

The means by which a message is expressed to the receiver.

Graduate School

An advanced program of study focused on a particular academic discipline or profession, typically after earning a bachelor’s degree.

Manager

A person responsible for controlling or administering an organization or group of staff.