If a checking account has an interest rate of 1% and a Treasury bill has an interest rate of 3%, the opportunity cost of holding cash in a checking account is: zero. 0.02%. 1%. 2%.

2%

Explanation:

Data provided in the question

Interest rate on a checking account = 1%

Interest rate on treasury bill = 3%

So, the opportunity cost of holding cash in a checking account is

= Interest rate on treasury bill  - Interest rate on a checking account

= 3% - 1%

= 2%

Simply we deduct the checking account interest rate from the treasury bill interest rate so that the opportunity cost could come

a) both were commissioned explorers

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

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bioteacher101