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1.What is the opportunity cost of holding large quantities of cash?

2.Why is it both an advantage and a disadvantage that fixed exchange rates limit the government's ability to carry out monetary and fiscal policy?

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1.What is the opportunity cost of holding large quantities of cash?
The opportunity cost of holding large quantities of cash is the money that could have been generated by the use of the cash. In other words this means that the interest that is given up for holding money is the opportunity cost.

2.Why is it both an advantage and a disadvantage that fixed ...

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