💶ap macroeconomics review

Opportunity cost of holding money

Written by the Fiveable Content Team • Last updated August 2025
Verified for the 2027 exam
Verified for the 2027 examWritten by the Fiveable Content Team • Last updated August 2025

Definition

The interest income or return foregone by holding money in its most liquid form rather than investing in interest-bearing assets such as bonds.

AP course connection

Topic 4.1: 4.1 Financial Assets

Unit 4

"Opportunity cost of holding money" also found in: