Households and businesses often hold some of their wealth as non-interest earning money balances because O a. Money balances always pay lower rates of return than the non-money assets O b. The opportunity cost of holding money balances is lower than that of other assets Money balances provide convenience and lower risk than many other assets O C. O d. Money balances offer a better protection against rising prices than do many other assets

Households and businesses often hold some of their wealth as non-interest earning money balances because O a. Money balances always pay lower rates of return than the non-money assets O b. The opportunity cost of holding money balances is lower than that of other assets Money balances provide convenience and lower risk than many other assets O C. O d. Money balances offer a better protection against rising prices than do many other assets

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3PA

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