Which of the following is NOT one of the fundamental factors affecting the cost of money?

The choice indicating that "Investor's social influence" is not a fundamental factor affecting the cost of money is correct. The cost of money, which essentially refers to the interest rate or the return that investors require to lend funds, is influenced primarily by key economic and financial factors.

The fundamental factors impacting the cost of money include a firm's production opportunities, which reflect the potential return on investments that can be generated by utilizing borrowed funds. The greater the potential return, the higher the willingness to pay a cost for the money.

Risk is another crucial factor, as investors demand higher returns for taking on higher risks. If an investment is perceived as more risky, the cost of borrowing increases, as lenders require compensation for the additional risk associated with the investment.

Inflation also plays a significant role, as it affects the purchasing power of money over time. If inflation is expected to rise, lenders typically increase interest rates to maintain their returns in real terms, ensuring that they are compensated for the decreasing value of money.

In contrast, "investor's social influence" is not a recognized fundamental factor in determining the cost of money. While social factors may impact individual investment decisions or preferences, they do not influence the broader economic principles that govern interest rates or the cost of money