Asked by ebony lofton on Apr 25, 2024
Verified
Money is
A) the most liquid asset and a perfect store of value.
B) the most liquid asset but an imperfect store of value.
C) not the most liquid asset but a perfect store of value.
D) neither the most liquid asset and nor a perfect store of value.
Liquid Asset
Assets that can be quickly and easily converted into cash without significant loss in value.
Store Of Value
An asset that can be saved, retrieved, and exchanged at a later time, and is predictably useful in the future to purchase goods and services.
- Delve into the basic properties of money and grasp its indispensable significance in the economic environment.
Verified Answer
SH
Sakina HussainApr 29, 2024
Final Answer :
B
Explanation :
Money is considered the most liquid asset because it can be quickly and easily converted into other assets without much loss of value. However, it is an imperfect store of value due to inflation and other factors that can erode its purchasing power over time.
Learning Objectives
- Delve into the basic properties of money and grasp its indispensable significance in the economic environment.