Question

The opportunity cost of holding money is:

• A. The car one could have purchased
• B. The land that one could have purchased
• C. The interest on alternate investment
• D. The returns on mutual funds one could have started

Answer 1

Answer: (A), (B), (C), (D)

The correct options are
A

The car one could have purchased

B

The land that one could have purchased

C

The interest on alternate investment

D

The returns on mutual funds one could have started

All of the above are opportunity costs of holding money as these are investments that could have been made with the money and there would have been returns earned on these investments.