Answer: Production opportunities, time preferences for consumption, risk, inflation.
Explanation:
The cost of money is the interest rate that lenders charge borrowers, and is determined by the supply and demand of funds. The fundamental factors that affect the cost of money are:
Risk: refers to the possibility in a financial market context, that a financial asset won´t have the return expected.
Inflation: refers to the trend of prices to rise over time, which means a higher return needed to compensate investors.
Production opportunity is the return available for investment.
Time preference for consumption: refers to the preference of consumers.
