Multiple choice

Money is

  1. acceptable only when it has intrinsic value

  2. constant in purchasing power

  3. the most liquid of all assets

  4. All of the above

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Money is the most liquid asset because it is universally accepted and can be immediately used to purchase goods and services or converted to other assets. It does not require intrinsic value (fiat money works) and its purchasing power fluctuates rather than remaining constant.

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