In addition to trust, which of the following is the basis for the practical value of money?
A) liquidity
B) exchange rate
C) medium of exchange
D) unit of accounting
E) store of value
Answer: A
Explanation: The practical value of money stems from two key properties: liquidity and trust. Money is the most liquid asset because it can be exchanged easily and more or less instantly for something else of value.
Business
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