The correct option is B.It acts as a medium of exchange
Money is the most liquid form of assets because it acts as a medium of exchange. As money has the quality of general acceptability, therefore all the exchanges in an economy take place in terms of money. Examples of most liquid assets includes; cash, Deposits accounts funds, Treasury bills and Bonds among others. Non liquid or illiquid assets include; land, furniture, Electronics etc because they cannot be easily converted to cash.
Cash is most liquid asset because it is used for buying and selling goods and services instantly without losing its own value. It is used immediately for economic reason
The correct option is B.It acts as a medium of exchange
Money is the most liquid form of assets because it acts as a medium of exchange. As money has the quality of general acceptability, therefore all the exchanges in an economy take place in terms of money. Examples of most liquid assets includes; cash, Deposits accounts funds, Treasury bills and Bonds among others. Non liquid or illiquid assets include; land, furniture, Electronics etc because they cannot be easily converted to cash.
Cash is most liquid asset because it is used for buying and selling goods and services instantly without losing its own value. It is used immediately for economic reason
