If a Checking Account Has an Interest Rate of 1

question 272

Multiple Choice

If a checking account has an interest rate of 1% and a Treasury bill has an interest rate of 2%, the opportunity cost of holding the checking account as money is:

• A) zero.
• B) 0.02%.
• C) 1%.
• D) 2%.

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Definitions:

Discussion

A process in which individuals exchange ideas, opinions, or information through spoken or written communication.

Hidden Profile

A situation in group decision-making where the optimal solution is only apparent when non-shared information from all members is compiled.

Information Dependence

The extent to which individuals or organizations rely on others for obtaining information.

Motorcycle Convention

A large gathering or event where motorcycle enthusiasts, manufacturers, and vendors come together to showcase, discuss, and celebrate motorcycle culture and technology.