Liquidity can be defined as the
a. cash value of money.
b. value of money adjusted for inflation.
c. value of fiat money when used for spending.
d. ease with which an asset can be converted to a spendable asset.
d
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Suppose that the Federal Reserve issued bonds in the amount of $45 million and the reserve requirement was 10%, what would be the resulting change to the monetary base?
A) $45 million B) $450 million C) $4.5 million D) The bond issuance would not impact the monetary base only the money stock.
Not all games with two or more Nash equilibria can be solved with pre-play communication because
A) cheap talk may be illegal under anti-trust laws. B) if there's an incentive for one or more players to lie, then cheap talk lacks credibility. C) pareto criterion might not be defined. D) Both A and B