The Opportunity Cost of Holding Money Increases When

question 64

Multiple Choice

The opportunity cost of holding money increases when:

• A)the interest rate rises.
• B)the interest rate falls.
• C)the price level falls.
• D)nominal GDP rises.
• E)nominal GDP falls.

---

Definitions:

Financial Statement Column

A component of financial statements where numeric information is arranged vertically for purposes of analysis, reporting, and decision-making.

Check Mark

A symbol used to indicate agreement, correctness, or selection, typically resembling a tick (✓).

Owner's Equity Statement

A financial document detailing the changes in ownership interest in a company over a period of time.

Classified Balance Sheet

A financial statement that segregates assets and liabilities into current and long-term categories, providing a detailed snapshot of a company’s financial position.