What factors affect the cost of money? Use at least one outsidesource. You may form your own opinions as well but support themwith research. I need examples to understand the four factorsplease. The four factors that affect the cost of money are: 1.Production Opportunities? - the returns available within an economyfrom investment in productive (cash producing) assets. 2. TimePreferences for Consumption? - the preferences of consumers forcurrent consumption as opposed to saving for future consumption. 3.Risk? - the chance that a financial asset will not earn the returnpromised. 4. Inflation - the tendency of prices to increase overtime.