Question

A nominal interest rate is defined as "the opportunity cost of holding or using money." explain what you understand this definition to mean.

Answer 1

Nominal interest rate can be defined  as a reference to the interest rate before making changes into account.

we can make changes to the account by holding or using money that means if we use our money for our personal use or just keep it as it is in both these cases the money will not provide us any interest hence in both cases there will be a loss of interest