The opportunity cost of holding money Group of answer choices varies inversely with the interest rate. varies directly with the interest rate. varies inversely with the level of economic activity. s zero because money is not an economic resource.

Varies directly with the interest rate.

Explanation:

Varies directly with the interest rate.

The opportunity cost of holding the money will be the earning that can be made by investing the money. Basically, it is the interest rate that an investment provides when money is invested. If the money is not invested and it just held then the interest rate that could be earned is the opportunity cost.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.

answer; buying the bill at a discount from the face value to be received at maturity;