the opportunity cost of golding money is ?

Question

is zero because money is not am economic resource
caries inversely with the iterest rate
varies directly eoth the interedt rate
varies inversely with the level of economic activity

Answer 1

The opportunity cost of holding money typically varies directly with the interest rate. This is because the more you hold cash (or money that does not earn interest), the more you are forgoing potential earnings that could have been earned if that money were invested or held in an interest-bearing account.

So, among the options given, the correct answer is:

Varies directly with the interest rate.

As interest rates rise, the opportunity cost of holding money increases because you are giving up more in potential interest income.