What factors affect the cost of money? Use at least one outside source. You may form your own opinions as well but support them with research. I need examples to understand the four factors please.
The four factors that affect the cost of money are:
1. Production Opportunities- the returns available within an economy from investment in productive (cash producing) assets.
2. Time Preferences for Consumption- the preferences of consumers for current consumption as opposed to saving for future consumption.
3. Risk- the chance that a financial asset will not earn the return promised.
4. Inflation- the tendency of prices to increase over time.