Questions: Forgone interest is the opportunity cost of money that people choose to hold. In other words, it is the of money. (Enter one word in the blank.)

Forgone interest is the opportunity cost of money that people choose to hold. In other words, it is the of money. (Enter one word in the blank.)

Transcript text: Forgone interest is the opportunity cost of money that people choose to hold. In other words, it is the $\square$ of money. (Enter one word in the blank.) Need help? Review these concept resources. Read About the Concept

Solution

The answer is: cost

Explanation:

Forgone interest refers to the opportunity cost associated with holding money instead of investing it. When individuals choose to hold onto their money rather than investing it in interest-bearing accounts or other investment vehicles, they miss out on the potential earnings they could have received. This missed potential earning is considered the "cost" of holding the money. Therefore, the word that fits in the blank is "cost."

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