Money is the most liquid asset, because as _______ it requires no conversion.
a) a unit of account
b) a medium of exchange
c) a store of value
d) fiat money
Ans: b) a medium of exchange
Economics
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Because interest rates have substantial fluctuations, the ________ theory of the demand for money indicates that velocity has substantial fluctuations as well
A) classical B) Cambridge C) liquidity preference D) Pigouvian
Economics
The Federal Reserve pursued an expansionary monetary policy during 1964 in order to
A) pull the United States out of a deep recession. B) counteract the effects of a deep cut in federal income taxes. C) keep interest rates from rising. D) bring down the inflation rate.
Economics