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Money and Its Functions · Question 19 of 57

Question 19

MediumOriginal question

Money is said to be the most liquid asset because

it earns the highest interestCorrect answerYour answerits value rises with inflationCorrect answerYour answerit is made of paperCorrect answerYour answerit can be spent at once without lossCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Liquidity is how easily an asset can be turned into purchases without loss; money is already the means of payment.

Concept: Liquidity of money
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsFunctions of money

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