Question

more frequent switching from bonds to money will result in a higher opportunity cost of holding money and lower money management costs. true or false.​

Answer 1

False

Step-by-step explanation:

In Economics, more frequent switching from bonds to money would not result in a higher opportunity cost of holding money and lower money management costs because on the average, individuals will have less money to hold. As a result of this, there would be a sharp decline or fall in their opportunity costs.

Also, as individuals make more business transactions, there would be a consequent increase or rise in their money management costs.

Hence, more frequent switching from bonds to money would result in a lower opportunity cost of holding money and higher money management costs.