The cost of holding cash, The cost of holding cash:

The cost of holding cash

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Reference no: EM131456349

The cost of holding cash:

A. is the opportunity cost of lost return.

B. is zero because it is the most liquid and desirable asset.

C. increases as cash holdings increase.

D. Both is the opportunity cost of lost return; and is zero because it is the most liquid and desirable asset.

E. Both is the opportunity cost of lost return and increases as cash holdings increase.

Reference no: EM131456349

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