What Distinguishes Money From Other Assets In The Economy?

Rabu, 12 Oktober 2022

What Distinguishes Money From Other Assets In The Economy?

REGGINA S Oktober 12, 2022 Comment

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100% (3 ratings) for this solution. Step 1 of 5. Money is a set of assets that people regularly use for buying and selling of goods and services. Actually, this is bad news all around.

Moreover, abc's declining credit rating means that the firm's assets are probably also dropping in. Liquidity is an ability of the asset to be sold quickly to be used for exchange of goods and services. Money acts as a medium of exchange because all goods and services can be exchanged in terms of money. Thus, it is a commonly accepted financial asset. Whereas, other assets, such as, shares and bonds cannot be used to trade goods and services. What distinguishes money from other assets in the economy? (2 mark) money is different from other assets in the economy because it is the most liquid asset available. Other assets vary widely in their liquidity. What are demand deposits, and why should they be included in the stock of money?