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CTP · Question #866

(Topic 9) Which of the following is an opportunity cost of maintaining excess liquidity?

The correct answer is D. Interest paid on outstanding debt. See the full explanation below for the reasoning.

Question

  • (Topic 9)

Which of the following is an opportunity cost of maintaining excess liquidity?

Options

  • ALoss of time in securing credit
  • BIncrease in interest earnings
  • CDecreased commitment fees
  • DInterest paid on outstanding debt

How the community answered

(36 responses)
  • A
    6% (2)
  • B
    8% (3)
  • C
    3% (1)
  • D
    83% (30)

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