Explore BrainMass
Share

Explore BrainMass

    opportunity cost

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1.What is the opportunity cost of holding large quantities of cash?

    2.Why is it both an advantage and a disadvantage that fixed exchange rates limit the government's ability to carry out monetary and fiscal policy?

    © BrainMass Inc. brainmass.com October 10, 2019, 2:29 am ad1c9bdddf
    https://brainmass.com/economics/exchange-rates/opportunity-cost-large-quantities-cash-379792

    Solution Preview

    Macro questions
    1.What is the opportunity cost of holding large quantities of cash?
    The opportunity cost of holding large quantities of cash is the money that could have been generated by the use of the cash. In other words this means that the interest that is given up for holding money is the opportunity cost.

    2.Why is it both an advantage and a disadvantage that fixed ...

    Solution Summary

    This posting gives you an in-depth insight into opportunity cost.

    $2.19