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Which of the following is not one of the four fundamental factors that affect the cost...

Which of the following is not one of the four fundamental factors that affect the cost of money? and why?

Production opportunities

time preferences for consumption

risk

liquidity

inflation

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Answer #1

liquidity is not one of the four fundamental factors that affect the cost of borrowings because it is not Quantitative in nature you can not quantify the liquidity on particular security so liquidity is not one of four fundamental factors that affect the cost of money.

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